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Japan and India Formally Adopt JCM Rule of Implementation Under Paris Agreement Article 6

Japan’s Ministry of the Environment announced that on 8 June 2026, Japan and India formally adopted the Rule of Implementation (RoI) for their bilateral Joint Crediting Mechanism (JCM) — the framework under which Japanese and Indian governments and businesses may cooperate on climate-mitigation projects and share the resulting GHG reductions in line with Paris Agreement Article 6.

The adoption follows a commitment reached at the inaugural Japan-India JCM Joint Committee meeting on 22 September 2025, at which both sides agreed to prioritise early finalisation of the RoI. The rules now in place cover the complete credit lifecycle: Project Idea Note confirmation, methodology approval, project registration, credit issuance, and third-party validation and verification. They also establish governance arrangements (the Joint Committee and its secretariat), sustainable-development implementation and reporting procedures, credit-allocation ratios determined at the point of project registration, crediting periods, and the Article 6 authorisations and corresponding adjustments required under the Paris rulebook. Finalisation of detailed procedural forms with the Indian side is continuing, the ministry says.

Japan’s broader JCM programme — operated jointly by the Ministries of Environment, Economy Trade and Industry, Agriculture Forestry and Fisheries, and Foreign Affairs — has accumulated more than 300 projects across energy, waste, and related sectors with partner countries to date. A legally-designated implementing institution was stood up in April 2025to help accelerate credit processing.

Carbon Market Context

  • Japan’s GX policy ecosystem shapes demand for JCM credits: the GX Future Consortium and GX Future League opened membership applications in March 2026, broadening the roster of Japanese corporates with formal green-transformation commitments that offshore bilateral credits could help fulfil.
  • A working group on green-market creation through intermediary emitters (「中間排出事業者を通じたグリーン市場創造検討WG」) published its findings in March 2026, reflecting active policy attention to the mechanics of how carbon credits move through Japanese corporate supply chains — a demand dynamic directly relevant to future Japan-India JCM credit uptake.

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