Why in news
- India and Japan launched the official Operational Manual for the Joint Crediting Mechanism (JCM) in New Delhi.
- The manual transitions bilateral carbon market cooperation from preparation to execution under Article 6.2 of the Paris Agreement.
Key terms
Joint Crediting Mechanism (JCM)
A bilateral mechanism initiated by Japan to quantitative reduce GHG emissions via technology transfer and shared credits.
Article 6.2 (Paris Agreement)
Provisions allowing decentralized bilateral or multilateral carbon credit transfers between countries.
ITMOs
Internationally Transferred Mitigation Outcomes, units used to trade carbon emission reductions across borders.
Double Counting
An accounting error where the same greenhouse gas emission reduction is claimed by both the buyer and seller nations.
What is the Joint Crediting Mechanism?
- Bilateral framework facilitating the diffusion of leading decarbonization technologies, infrastructure, and mitigation actions from Japan to partner developing nations.
- Operates under Article 6.2 of the Paris Agreement, which allows countries to use Internationally Transferred Mitigation Outcomes (ITMOs) to meet Nationally Determined Contributions (NDCs).
Key provisions of the Operational Manual
- Establishes a standardized procedural framework covering the full project cycle: from Project Idea Note (PIN) submission to verification, credit issuance, and authorization.
- Ensures robust accounting to prevent double counting of carbon emission reductions between both nations.
Why it matters
- Mobilizes private sector climate finance and accelerates high-integrity technology transfer to India's energy-intensive sectors.
- Strengthens transparent, rule-based bilateral carbon trading ahead of full global Article 6 market rollouts.
Prelims facts
- JCM operates specifically under Article 6.2 of the Paris Agreement, not Article 6.4 central mechanisms.
Mains discussion
- Significance of Article 6 mechanisms in accelerating industrial decarbonization and climate finance in developing economies.
Source: PIB Press Release
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