Press Release
August 29, 2025
- Global Environment
Signing of the Memorandum of Cooperation on the JCM between Japan and the Republic of India to Begin Cooperation to Create Carbon Credits through Decarbonization Projects
< Joint press release with the Ministry of Foreign Affairs and the Ministry of Economy, Trade and Industry of Japan>
１． On August 7, 2025, H.E. Mr. ONO Keiichi, Ambassador of Extraordinary and Plenipotentiary of Japan to the Republic of India, and Mr. Tanmay KUMAR, Secretary, Ministry of Environment, Forest, and Climate Change of the Republic of India, signed the Memorandum of Cooperation between the Government of Japan and the Government of the Republic of India on the Joint Crediting Mechanism (JCM), a mechanism consistent with Article 6 of the Paris Agreement, which allows companies and governments of both countries to collaborate on technical and financial aspects to implement measures, and allocate the resulting GHG reductions and absorptions according to each country's contribution.
２． On August 29, 2025, during the India-Japan Economic Forum, ASAO Keiichiro, Minister of the Environment of Japan, delivered a keynote speech, stating that the JCM would be effectively utilized to promote climate change countermeasures and the deployment of decarbonization technologies through collaboration between Japan and India.
３． On the same day, the Japan-India Joint Statement and the Japan-India Joint Vision for the Next Decade, announced by the leaders of Japan and India, welcomed the signing of the Memorandum of Cooperation on the JCM and stated that the two governments will cooperate to promote bilateral climate change countermeasures utilizing the JCM. Additionally, under the witness of the leaders of Japan and India, ASAO Keiichiro, Minister of the Environment of Japan and H.E. Mr. Sibi GEORGE, Ambassador of the Republic of India to Japan exchanged the signed documents.
４． Going forward, the Ministry of the Environment will work closely with the Ministry of Economy, Trade and Industry and other relevant ministries and agencies of Japan, as well as the JCM Implementation Agency (JCMA), to promote the smooth operation of the system and maximize its results, with the aim of creating a model case that simultaneously achieves rapid economic growth and the resolution of climate change, a common challenge for humanity, through the collaboration of companies from both countries, the implementation of specific projects, and the utilization of market mechanisms to attract private capital.
Signing of the Memorandum of Cooperation on the JCM on August 7, 2025
ASAO Keiichiro, Minister of the Environment of Japan, delivered a keynote speech
at India-Japan Economic Forum on August 29, 2025
at India-Japan Economic Forum on August 29, 2025
1. Signing of the Memorandum of Cooperation on the JCM between Japan and India
On August 7, 2025, H.E. Mr. ONO Keiichi, Ambassador of Extraordinary and Plenipotentiary of Japan to the Republic of India, and Mr. Tanmay KUMAR, Secretary, Ministry of Environment, Forest, and Climate Change of the Republic of India, signed the Memorandum of Cooperation between the Government of Japan and the Government of the Republic of India on the Joint Crediting Mechanism (JCM).
The Indian government has already announced priority areas for decarbonization through international cooperation, which include CBG, hydrogen and ammonia derived from renewable energy, transition of high-emission industries, and CCS, among others—areas where Japanese companies can contribute significantly.
India is the 31st country to sign the JCM with Japan, and for India, the JCM with Japan marks the first bilateral cooperation under the Paris Agreement. The establishment of the JCM system is expected to serve as a model case for achieving rapid economic growth and addressing social and environmental challenges simultaneously, particularly in a major emitter, by leveraging market mechanisms to attract significant private capital.
【Overview of the Memorandum of Cooperation】
○ In order to pursue the Paris Agreement temperature goal and to enhance bilateral cooperation in addressing climate change, the Government of Japan and the Government of the Republic of India establish and implement the Joint Crediting Mechanism (JCM).
○ Both governments mutually recognize that a part of the JCM credits issued from emission reductions and removals under the JCM may be used towards the achievement of Japan's NDC as internationally transferred mitigation outcomes, and that the remaining JCM credits can contribute to achieving the NDC of the Republic of India, consistent with the guidance on cooperative approaches referred to in Article 6.2 of the Paris Agreement.
○ Both governments ensure the transparency and environmental integrity of the JCM and maintain it simple and practical.
【Overview of the JCM】
A mechanism established consistently with Article 6 of the Paris Agreement, under which companies and government of Japan and partner countries cooperate in terms of technology and funding to implement measures, and the resulting GHG reductions and removals are allocated in proportion to the contributions of each country. The Ministry of Economy, Trade and Industry, the Ministry of Foreign Affairs, the Ministry of Agriculture, Forestry and Fisheries, and the Ministry of the Environment of Japan are working together to operate the system as a unified government effort. To date, approximately 270 projects have been implemented in various fields, including energy and waste, and in April of this year, the designated implementation agency was established based on the law to accelerate the process.
* JCM partner countries: Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand, Philippines, Senegal, Tunisia, Azerbaijan, Moldova, Georgia, Sri Lanka, Uzbekistan, Papua New Guinea, United Arab Emirates, Kyrgyzstan, Kazakhstan, Ukraine, and Tanzania, with India becoming the 31st country to join.
* The Japanese government designated the JCM Implementation Agency (JCMA) in accordance with the revised Act on Promotion of Global Warming, the Global Environment Centre was designated as the JCM Implementation Agency (JCMA).
JCM Implementation Agency (JCMA)
The Indian government has already announced priority areas for decarbonization through international cooperation, which include CBG, hydrogen and ammonia derived from renewable energy, transition of high-emission industries, and CCS, among others—areas where Japanese companies can contribute significantly.
India is the 31st country to sign the JCM with Japan, and for India, the JCM with Japan marks the first bilateral cooperation under the Paris Agreement. The establishment of the JCM system is expected to serve as a model case for achieving rapid economic growth and addressing social and environmental challenges simultaneously, particularly in a major emitter, by leveraging market mechanisms to attract significant private capital.
【Overview of the Memorandum of Cooperation】
○ In order to pursue the Paris Agreement temperature goal and to enhance bilateral cooperation in addressing climate change, the Government of Japan and the Government of the Republic of India establish and implement the Joint Crediting Mechanism (JCM).
○ Both governments mutually recognize that a part of the JCM credits issued from emission reductions and removals under the JCM may be used towards the achievement of Japan's NDC as internationally transferred mitigation outcomes, and that the remaining JCM credits can contribute to achieving the NDC of the Republic of India, consistent with the guidance on cooperative approaches referred to in Article 6.2 of the Paris Agreement.
○ Both governments ensure the transparency and environmental integrity of the JCM and maintain it simple and practical.
【Overview of the JCM】
A mechanism established consistently with Article 6 of the Paris Agreement, under which companies and government of Japan and partner countries cooperate in terms of technology and funding to implement measures, and the resulting GHG reductions and removals are allocated in proportion to the contributions of each country. The Ministry of Economy, Trade and Industry, the Ministry of Foreign Affairs, the Ministry of Agriculture, Forestry and Fisheries, and the Ministry of the Environment of Japan are working together to operate the system as a unified government effort. To date, approximately 270 projects have been implemented in various fields, including energy and waste, and in April of this year, the designated implementation agency was established based on the law to accelerate the process.
* JCM partner countries: Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand, Philippines, Senegal, Tunisia, Azerbaijan, Moldova, Georgia, Sri Lanka, Uzbekistan, Papua New Guinea, United Arab Emirates, Kyrgyzstan, Kazakhstan, Ukraine, and Tanzania, with India becoming the 31st country to join.
* The Japanese government designated the JCM Implementation Agency (JCMA) in accordance with the revised Act on Promotion of Global Warming, the Global Environment Centre was designated as the JCM Implementation Agency (JCMA).
JCM Implementation Agency (JCMA)
2. India-Japan Economic Forum
Date and Time: August 29, 2025, 2:00 PM to 5:00 PM
Venue: Tokyo, Japan
Hosted by: Japan External Trade Organization (JETRO), Ministry of Economy, Trade and Industry (METI) of Japan, Japan Business Federation (Keidanren), Japan Chamber of Commerce and Industry (JCCI), and the Embassy of India in Japan
At Seminar Session 3 “Exploration of Cutting-Edge Industries Cooperation Between India and Japan”, ASAO Keiichiro, Minister of the Environment of Japan, delivered a keynote speech, stating that Japan and India will promote climate change countermeasures and the expansion of decarbonization technologies through bilateral cooperation, including the effective utilization of the JCM.
Venue: Tokyo, Japan
Hosted by: Japan External Trade Organization (JETRO), Ministry of Economy, Trade and Industry (METI) of Japan, Japan Business Federation (Keidanren), Japan Chamber of Commerce and Industry (JCCI), and the Embassy of India in Japan
At Seminar Session 3 “Exploration of Cutting-Edge Industries Cooperation Between India and Japan”, ASAO Keiichiro, Minister of the Environment of Japan, delivered a keynote speech, stating that Japan and India will promote climate change countermeasures and the expansion of decarbonization technologies through bilateral cooperation, including the effective utilization of the JCM.
3. Regarding the Japan-India Joint Statement, etc.
On August 29, 2025, the Japan-India Joint Statement and the Japan-India Joint Vision for the Next Decade, announced by the leaders of Japan and India, welcomed the signing of a Memorandum of Cooperation on the JCM and stated that the two governments will cooperate to promote bilateral climate change countermeasures utilizing the JCM.
Contact
Office for the Joint Crediting Mechanism and International Carbon Market, Global Environment Bureau, Ministry of the Environment, Japan
- Direct number
- +81-3-5521-8246
- jcm-contact@env.go.jp