India, Japan finalise joint crediting mechanism

• India and Japan adopted the rule of implementation for a joint crediting mechanism under Article 6.2 of the Paris Agreement of the United Nations Framework Convention on Climate Change (UNFCCC).

• In 2025, the two countries signed a memorandum of understanding for the joint crediting mechanism.

• The mechanism established a framework for collaboration on mitigation activities that deliver greenhouse gas emission reductions or removals while supporting sustainable development outcomes in India and contributing to the achievement of both countries’ Nationally Determined Contributions (NDCs).

What is Article 6.2 of the Paris Agreement?

• Under Article 6.2 of the Paris Agreement, countries can trade emissions reductions bilaterally.

• It enables a host country to sell units to a buyer country, in exchange for investments, support for capacity building, and access to technologies not available through domestic resources. 

• The buyer country purchases these units, known as Internationally Transferred Mitigation Outcomes (ITMOs), to address any gaps in meeting its own climate goals.

Significance of joint crediting mechanism

• The joint crediting mechanism is a system to cooperate with countries for reducing greenhouse gas emissions, under which the amount of emission reduction is assessed as contribution by both partner countries.

• Japan has signed a joint crediting mechanism partnership document with more than 30 countries.

• The rule of implementation defines robust governance arrangements, including a joint committee with representatives from both governments, transparent project approval procedures, third-party validation and verification, sustainable development safeguards and national registries to track the issuance and transfer of credits.

• The joint crediting mechanism demonstrates India’s firm commitment to climate action. 

• The joint crediting mechanism aims to catalyse investment, technology transfer, and capacity-building for projects involving low-carbon technologies in India to support climate change mitigation and sustainable development.

(The author is a trainer for Civil Services aspirants.)