Answer: Joint Crediting Mechanism
Notes: India and Japan recently signed a Memorandum of Cooperation in Aug 2025 on the Joint Crediting Mechanism (JCM), a Japanese initiative that allows investment in low-carbon technologies in developing countries. The resulting emission reductions are credited to Japan’s carbon account, helping it meet climate targets. For India, the JCM will bring investment, technology transfer, and capacity building, while also enabling carbon credit trading under Article 6.2 of the Paris Agreement. This supports India’s NDC goals: reducing emission intensity by 45% by 2030, achieving 50% non-fossil fuel power capacity, and creating a carbon sink of 2.5–3 billion tonnes CO₂ through afforestation.
