India and Japan have signed a Memorandum of Cooperation (MoC) to implement Joint Crediting Mechanism (JCM) under Article 6.2 of the Paris Agreement, Ministry of Environment, Forest and Climate Change (MoEFCC) announced on Friday (August 29, 2025).
The agreement, signed earlier this month, reinforces India’s commitment to climate action and low-carbon development as the country works towards achieving Net Zero emissions by 2070.
Prime Minister Narendra Modi, during his ongoing visit to Japan, highlighted the partnership as part of the broader Indo-Japan cooperation agenda, “Green Energy Focus for a Better Future.”
The initiative is expected to attract investments, facilitate advanced technology transfer, and provide capacity-building support for projects aimed at reducing greenhouse gas (GHG) emissions and promoting sustainable development.
JCM will encourage large-scale adoption of low-carbon technologies approved by India’s National Designated Agency for Implementation of Article 6 of the Paris Agreement (NDAIAPA). These technologies are currently cost-intensive, requiring viability gap funding, and the collaboration is expected to address this challenge by providing financial and technical assistance.
Memorandum of Cooperation also paves the way for international trading of carbon credits generated from these projects with Japan and potentially other countries, while ensuring that India’s Nationally Determined Contributions (NDCs) remain unaffected.
Union Cabinet has also authorised MoEFCC to finalise the Rules of Implementation (RoI) and sign similar agreements with other nations under Article 6.2, in consultation with relevant ministries and the Ministry of External Affairs (MEA).
Addressed a business event in Tokyo. The presence of Prime Minister Ishiba made this even more special, also indicating the priority we accord to bilateral economic linkages.
— Narendra Modi (@narendramodi) August 29, 2025
Spoke about India's deep economic ties with Japan and also listed areas where cooperation can deepen in… pic.twitter.com/mfBpv1TCQf
