India and Japan are set to sign a memorandum of cooperation to establish a Joint Crediting Mechanism (JCM), through which they will share emission reduction credits. The JCM will be created under Article 6.2 of the Paris Agreement.
A joint committee will be formed to develop rules and guidelines for the JCM, including procedures for project cycles, methodologies, project design documents, monitoring, and the appointment of third-party entities.
Decisions regarding project registration, crediting periods, credit distribution, and issuance will require prior approval from both Indian and Japanese governments. Both countries acknowledge that JCM credits from emission reductions and removals will contribute to their nationally determined contributions (NDCs), ensuring no double counting.
Some JCM credits may also be used for international mitigation efforts. As reported by vajiramandravi.com, the two countries will finalize project registration before the joint committee makes any decisions and will determine the allocation percentage of credits. Additionally, Japan will assist with technology transfer, financing, and capacity building for the JCM.
