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MoU inked for investments in decarbonising technologies
India and Japan have signed a memorandum of cooperation under the Joint Crediting Mechanism (JCM) framework of the Paris Agreement, opening the door for increased Japanese investment in decarbonising technologies across India.
The agreement, signed earlier this month under Article 6.2 of the Paris Agreement, was highlighted by Prime Minister Narendra Modi during his ongoing visit to Japan as part of the countries' “Green Energy Focus for a Better Future” cooperation initiative.
Speaking at a business event in Tokyo alongside Japanese Prime Minister Shigeru Ishiba, Modi outlined ambitious areas for bilateral cooperation. “Like we did in automobiles, recreate the same magic in batteries, robotics, semiconductors, shipbuilding, nuclear energy,” Modi wrote on X, emphasising tech-talent synergy and next-generation infrastructure combining “Japan's excellence and India's scale”.
According to the Japanese ministry of foreign affairs, the JCM aims to facilitate the spread of cutting-edge decarbonising technologies through Japanese investment, contributing to greenhouse gas emission reductions and sustainable development in partner countries whilst helping both nations achieve their nationally determined contributions (NDCs) under the Paris Agreement.
Article 6 of the Paris Agreement facilitates the creation and functioning of carbon markets. Under Article 6.2, countries can trade emissions reductions bilaterally, enabling host nations to sell carbon units to buyer countries in exchange for investments, capacity-building support, and access to technologies unavailable through domestic resources.
The ministry of environment, forest and climate change (MoEFCC) described the development as demonstrating “India's firm commitment to Climate Action” and marking “yet another milestone in the implementation of the Paris Agreement”.
The low-carbon technologies approved by India's National Designated Agency for Implementation of Article 6 of Paris Agreement (NDAIAPA) under Article 6.2 form a crucial component of the country's long-term strategy to achieve Net Zero emissions by 2070.
The JCM framework will encourage investment flows, technology assistance, and capacity-building support whilst developing domestic ecosystems to localise low-carbon technologies and associated high-tech interventions. This includes equipment, machinery, products, systems and infrastructure, paving the way for large-scale deployment.
Crucially, the partnership will enable international trading of carbon credits generated from Indian projects with Japan and other countries under Article 6.2 without adversely impacting India's NDC commitments.
The Union cabinet has authorised the MoEFCC to finalise Rules of Implementation and sign similar agreements with other countries under Article 6.2, in consultation with concerned ministries and the Ministry of External Affairs.
The agreement builds on India and Japan's strong history of economic, commercial and cultural cooperation, with the new climate partnership aimed at bolstering joint efforts on climate change mitigation.
Source: HindustanTimes
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