The Hindu : Page 11
Syllabus : GS 2 & 3 : International Relations & Enviroment
India and Japan are preparing to sign a Memorandum of Cooperation to establish a Joint Crediting Mechanism (JCM) for carbon trading.
- This mechanism will allocate and track carbon credits, boost job creation, and support low-carbon technologies, contributing to both countries’ climate goals while ensuring compliance with the Paris Agreement.
Memorandum of Cooperation for Setting Up a Joint Crediting Mechanism (JCM)
- Objective and Framework: India and Japan plan to sign a Memorandum of Cooperation to establish a Joint Crediting Mechanism (JCM) for sharing emission-reduction credits.
o The JCM will involve a structured allocation of carbon credits and maintain a registry to track these credits, with projects needing clearance from a Joint Committee.
What is carbon trading?
- Carbon trading, also known as carbon emissions trading, is a market-based approach to controlling pollution by providing economic incentives for reducing greenhouse gas emissions.
- Under this system, companies or countries are allocated a certain number of carbon credits or allowances, which represent the right to emit a specific amount of carbon dioxide.
- Entities that reduce their emissions below their allowance can sell their surplus credits to others who need them, thus creating a financial incentive to lower overall emissions.
- Joint Crediting Mechanism (JCM) The Joint Crediting Mechanism (JCM) is a bilateral framework initiated by a developed country to support greenhouse gas reduction projects in developing countries.
- It allows for the generation of carbon credits through projects that reduce emissions, which are then shared between a developed country and the host country.
- The mechanism aims to promote sustainable development, transfer advanced technologies, and help both parties meet their climate targets under international agreements.
Emission Cuts
- Credit Allocation: Credits issued under the JCM will contribute to both Japan’s and India’s Nationally Determined Contributions (NDCs) under the Paris Agreement. The JCM will avoid double counting of credits and may authorize some credits for international mitigation purposes.
- Technology Transfer and Capacity Building: Japan will support technology transfer, finance, and capacity building to enhance the effectiveness of the JCM and facilitate the adoption of new technologies.
Significance of JCM:
- Increased Access to Clean Technologies: The JCM will facilitate the transfer of advanced decarbonizing technologies from Japan to India, such as renewable energy systems, energy-efficient appliances, and waste management solutions.
- Job Creation and Skill Development: The implementation of JCM projects will create new employment opportunities in sectors like renewable energy, energy efficiency, and waste management
UPSC Mains PYQ : 2022
Ques: Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics.
