Current Affairs - International - Discussion

India has entered into a landmark Joint Credit Mechanism (JCM) agreement with Japan under Article 6.2 of the Paris Agreement. This collaboration aims to enhance carbon trading, promote green investment, and accelerate sustainable innovation. The partnership is strategically important as it comes amid challenges like U.S. tariffs on Indian goods and China’s restrictions on rare earth exports. Japan’s role provides India with an alternative pathway to strengthen clean energy development and manufacturing. Additionally, the JCM facilitates bilateral carbon credit trading, technology transfer, and capacity building, helping India progress toward its Net Zero 2070 target while positioning both nations as leaders in sustainable climate action ahead of COP30.