India and Japan sign MoC to advance low-carbon technology cooperation under Article 6.2 of the Paris Agreement on climate change, marking a significant step toward bolstering global climate action. In line with India’s long-term plan to achieve net-zero emissions by 2070, the agreement, announced by the country’s Union Environment Ministry, aims to promote the sharing of low-carbon technology, investments, and expertise. Under the subject “Green Energy Focus for a Better Future,” the MoC, signed during Prime Minister Narendra Modi’s visit to Japan, focuses on a crucial area of Indo-Japanese cooperation.

Strengthening Climate Partnership through Low-Carbon Technologies

As India and Japan sign the MoC to advance low-carbon technology cooperation, the main goal is building institutional and technical capacity for the creation and implementation of low-carbon initiatives in India. India will gain access to Japanese investment and technological support under the JCM framework, particularly in areas like sustainable transportation, energy efficiency, and renewable energy. In addition to reducing greenhouse gas emissions, these initiatives will pave the way for sustainable growth.

The JCM will be implemented in compliance with India’s climate policy, as approved by the National Designated Agency for Implementation of Article 6 of the Paris Agreement (NDAIAPA). The MoC aims to establish a robust domestic ecosystem that can localize and adapt low-carbon solutions to Indian conditions by promoting investment and technology transfer. This effort has two benefits: it accelerates India’s low-carbon transition while also furthering its development goals.

The MoC is similarly vital to Japan. It reaffirms its dedication to international collaboration under the Paris Agreement and solidifies its position as a world leader in clean technology. Japan can demonstrate how cooperative strategies can strike a balance between prosperity and sustainability by collaborating with India, one of the world’s largest developing economies.

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Carbon Credit Trading and Pathway to Net-Zero

Source: PIB

The MoC’s provision for international carbon credit trading, as outlined in Article 6.2 of the Paris Agreement, is one of its most notable features. Through confirmed decreases or eliminations of greenhouse gas emissions, projects carried out under the JCM will provide carbon credits. India and Japan can both benefit from the global trading of these credits without compromising India’s obligations under its Nationally Determined Contributions (NDCs).

This approach is intended to ensure that India maintains complete sovereignty over its own emission reduction commitments, while Japan can utilize carbon credits to fulfill its climate objectives. The framework ensures that trading operations will support India’s path to net-zero emissions by 2070 rather than hurt its domestic climate targets.

It is anticipated that the MoC will also create new avenues for Indian companies and sectors to embrace advanced low-carbon technologies. It establishes the groundwork for the widespread implementation of renewable energy solutions by fostering innovation. Furthermore, by ensuring that wealthier countries, such as Japan, contribute significantly to supporting developing countries in their green transitions, it upholds the principle of climate justice.

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