India and Japan have finalised the rules for a new carbon credit partnership called the Joint Crediting Mechanism (JCM), under the Paris climate agreement. The partnership will enable Japanese investment and technology to fund projects in India that reduce or remove greenhouse gas emissions.
Carbon credits can be shared between the two countries to help meet their climate targets, officials said. The environment, forest, and climate change ministry said the rules for the implementation of the credit mechanism were adopted on June 8, 2026.
The Joint Crediting Mechanism will help attract investment, bring low-carbon technologies to India, build technical capacity, and support projects that cut emissions while contributing to sustainable development.
However, a new analysis raised concerns over Asia's growing reliance on liquefied natural gas (LNG), stating it could deepen fossil fuel dependence, expose economies to global price shocks, and drive emissions linked to worsening climate impacts across the region.
