India–Japan Pact on Low-Carbon Technology (JCM)

Context:

• During PM Modi’s visit to Japan, the Ministry of Environment, Forest and Climate Change (MoEFCC) announced a Memorandum of Cooperation (MoC) with Tokyo under the Joint Crediting Mechanism (JCM).

About Joint Crediting Mechanism (JCM):

• Japanese initiative to deploy and invest in low-carbon technologies in developing countries.

• Emission reductions achieved through these projects are partly credited to Japan as carbon credits, helping it meet its national emission reduction targets.

• India will benefit through technology transfer, investment flow, and capacity building.

Key Features of the MoC:

1. Promotes localisation of low-carbon technologies (equipment, systems, infrastructure).

2. Encourages large-scale deployment of advanced climate-friendly technologies.

3. Facilitates carbon credit trading under Article 6.2 of the Paris Agreement, with Japan and other nations.

4. India’s NDC commitments remain intact:

   • Reduce emission intensity by 45% by 2030 (2005 baseline).

   • Achieve 50% power capacity from non-fossil fuels by 2030.

   • Create additional carbon sink of 2.5–3 billion tonnes CO₂ equivalent by 2030 (via afforestation).

Institutional Setup:

• National Designated Authority (NDA) established as nodal body to:

  • Approve JCM projects.

  • Validate emission reductions.

  • Oversee functioning of the Indian Carbon Market (ICM).

• Cabinet has authorised finalisation of rules for implementation and agreements with other countries.

Significance:

• Enhances climate finance and technology transfer.

• Strengthens India’s position in global carbon markets.

• Supports sustainable development and green growth.

• Complements India’s Energy Transition and Viksit Bharat @2047 goals.