Context: The Ministry of Environment, Forest and Climate Change has signed an Memorandum of Cooperation (MoC) with the government of Japan on Joint Crediting Mechanism (JCM) under Article 6.2 of the Paris Agreement of the United Nations Framework Convention on Climate Change (UNFCCC).
Relevance of the topic:
Prelims: Article 6.2 of Paris Agreement, National Designated Authority.
Mains: Significance of India-Japan Joint Crediting Mechanism.
The MoC was unveiled as part of the broader Indo-Japan cooperation framework titled Green Energy Focus for a Better Future.
Article 6.2 of the Paris Agreement
- Under Article 6.2 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.
About the Joint Crediting Mechanism (JCM)
- The JCM is a Japanese initiative designed to promote global climate action. Under this mechanism, Japan implements and invests in low-carbon technologies in developing countries.
- The resulting emission reductions are credited to both Japan and the host country, and Japan uses its share to meet its Nationally Determined Contributions (NDCs).
- Unlike the Clean Development Mechanism (CDM) established under Kyoto Protocol, host countries under JCM act as joint implementers, not just passive participants.
- A Joint Committee manages the mechanism including rules, methodologies, project registration, and credit sharing.
- India has established a National Designated Authority (NDA) to approve JCM projects and oversee the functioning of the domestic carbon market.
Significance for India’s Climate Commitments:
India has made ambitious NDC commitments under the Paris Agreement for 2030. These include:
- Reducing the emission intensity of GDP by 45% from 2005 levels.
- Achieving 50% cumulative electric power capacity from non-fossil fuel sources.
- Creating an additional carbon sink of 2.5-3 billion tonnes of CO₂ equivalent through afforestation.
JCM will support India in meeting these targets by providing foreign investment, advanced technology, and access to international carbon markets.
It will also enable the international trading of carbon credits generated from such projects under Article 6.2 of the Paris Agreement with Japan and other countries on similar lines without adversely impacting India’s NDC commitments.