On 8 June 2026, the joint committee established under the India-Japan memorandum of co-operation on the joint crediting mechanism adopted the rule of implementation, operationalising the bilateral carbon crediting arrangement the two governments signed in Delhi on 7 August 2025.
The JCM is a co-operative approach under article 6.2 of the Paris Agreement, through which Japan’s government, and public and private entities, co-operate with India’s government and respective counterparts to implement mitigation activities in India.
Verified emission reductions are issued as JCM credits, allocated between participants and shared between the two countries.
The MoC and RoI operate as a two-tier regulatory system, with the MoC establishing the political framework and institutional structure, and the RoI serving as the operational rulebook.
Under RoI paragraph 29, every project must align with activities approved by India’s government under article 6.2 of the Paris Agreement, including renewable energy with storage, solar thermal power plant, offshore wind, green hydrogen, high-voltage direct current transmission for renewable energy projects, and high-end technology for energy efficiency.
Abhishek Tripathi, managing partner at Sarthak Advocates & Solicitors, notes that this orientation is not incidental, as India’s Biennial Update Report 2024 records that the energy sector accounts for more than three-quarters of India’s greenhouse gas emissions.
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The joint committee, under MoC clause 4 and constituted under RoI paragraphs 16-18, is a bilateral body of up to 10 members from each government, with operational responsibility for methodologies, registration, credit sharing and issuance.
A defining design feature of the MoC and RoI is that joint committee decisions rest on prior sovereign approvals by both governments, with MoC clause 6 providing that decisions on registration, crediting period, sharing of credits, issuance of credits and other related matters are made with prior confirmation from both governments.
Clauses 11, 12 and 13 restate this requirement for registration, credit allocation and issuance, with the design being one of shared decision making with structured sovereign approvals on both sides.
Ashutosh Senger, counsel at Sarthak Advocates & Solicitors, points out that on the Indian side, authorisation comes via the National Designated Authority for the Implementation of Article 6 of the Paris Agreement.
Paragraph 47 provides for a letter of intent for issuance and authorisation of JCM credits by India’s government shortly after registration, and paragraph 58 requires joint committee decisions on the issuance to follow approval from both governments.
Credit sharing merits attention, as RoI paragraph 6 does not fix the allocation between Japanese and Indian participants by formula, but rather through a legally structured negotiation grounded in documented contributions.
The mechanism is bilateral in institution and design, operating through structured sovereign approvals by both governments, with project timelines, credit-sharing arrangements and the 10-year crediting cap being features to structure around a mechanism now open for business.
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Abhishek Tripathi and Ashutosh Senger can provide insight into the implications of this mechanism for businesses and governments alike, given their roles at Sarthak Advocates & Solicitors.
Given that the energy sector is a significant contributor to India’s greenhouse gas emissions, the JCM is an important step towards reducing these emissions and promoting sustainable development, with the Indian government already taking steps to promote the development of renewable energy.
The success of this mechanism will depend on the ability of both governments to work together and provide the necessary approvals and support for projects.
Rapid growth.
It is likely that the JCM will have a significant impact on the development of renewable energy projects in India, and energy will play a key role in reducing greenhouse gas emissions.
The Indian government has already taken steps to promote the development of renewable energy, and the JCM will provide an additional incentive for businesses to invest in this sector, with the goal of reducing emissions and promoting sustainable development being a key aspect of the mechanism.
