NEWS – During Prime Minister Narendra Modi’s visit to Japan, India’s Environment Ministry announced that it had signed a Memorandum of Cooperation (MoC) with Tokyo on a Joint Crediting Mechanism (JCM) — the first such initiative between the two nations to advance low-carbon technologies.

HIGHLIGHTS

What is the Joint Crediting Mechanism (JCM)?

• A Japanese initiative where Japan invests in and implements low-carbon technologies in developing countries.
• Emission reductions achieved are credited to Japan as carbon credits to meet its own emission-reduction targets.

Key Features of the MoC

• Technology Transfer & Capacity Building: Facilitates investment and technology assistance, including equipment, systems, and infrastructure.
• Domestic Ecosystem: Encourages localisation of high-end low-carbon technologies in India.
• Project Scope: Supports projects contributing to greenhouse gas reduction, removal, and sustainable development.

International Carbon Trading

• Enables international trading of carbon credits under Article 6.2 of the Paris Agreement.
• Ensures such trading does not adversely affect India’s Nationally Determined Contribution (NDC) commitments.

India’s Climate Commitments

• Reduce emission intensity by 45% by 2030 (from 2005 levels).
• Achieve 50% cumulative electric power capacity from non-fossil fuel sources by 2030.
• Create an additional 2.5–3 billion tonnes of CO2 sink through afforestation by 2030.

Institutional Framework

• National Designated Authority (NDA): Constituted to approve projects, validate emission reductions, and oversee India’s carbon market.
• Cabinet approval given for finalising rules of implementation and signing similar agreements with other nations.