Article 6.2 of the Paris Agreement offers developing countries both an opportunity and a risk. Examine with reference to the India–Japan Joint Crediting Mechanism.

Article 6.2 lets countries cooperate bilaterally and transfer Internationally Transferred Mitigation Outcomes (ITMOs) towards their NDCs. The India–Japan Joint Crediting Mechanism (JCM) has moved from an MoC (2025) through the Rules of Implementation (June 2026) to an Operational Manual (September 2026) [1]. It is a real opportunity for India, but only if India protects the integrity of each credit.

Opportunities

• Finance and technology: The JCM aims to bring in advanced low-carbon technologies and mobilise climate finance [1]. India's Article 6.2 positive list includes green hydrogen, compressed bio-gas, offshore wind, sustainable aviation fuel and CCUS [3].
• Rule-based governance: The Manual sets out the full project cycle, from the Project Idea Note to the issuance and authorisation of credits [1]. A Joint Committee with members from both governments has third-party verification [2], so India keeps a veto.
• Strategic gains: It adds a green layer to the Special Strategic and Global Partnership. India also becomes a host country in carbon markets, not just a recipient of aid [1].

Risks

• Selling cheap cuts: Through corresponding adjustments, India gives up the tonnes it authorises for transfer [4]. If it sells its cheapest cuts, only costlier options remain for its own NDC. The positive list limits which activities can sell; renewables count only for the stored component [3]. It does not cap how many tonnes are transferred.
• Inflated baselines: UNFCCC experts reviewing Mongolia's JCM warned that corresponding adjustments "could still lead to a net increase in global emissions" if baselines are set too high [5].
• Weak transparency: Mongolia's authorisation documents could not be found, and JCM credit serial numbers do not show authorisation or vintage [5]. Reviewers also asked Japan whether its registry complies with decision 6/CMA.4 [4].
• Equity concern: Critics compare the JCM to the Kyoto-era CDM, in which rich countries met their targets cheaply on developing-country land.

Way forward

• Publish every project-level authorisation, as decision 4/CMA.6 requires [5].
• Require each project to show its baseline is below business-as-usual, and issue credits only in the upgraded registry.
• Set the NDAIAPA's procedures in place before the first credit is issued [3].

The JCM is not a giveaway by design. Whether it serves India depends on strict baselines, open paperwork and careful use of India's Joint Committee vote. Run this way, Article 6.2 can fund India's frontier decarbonisation towards Net Zero 2070 and still support the Paris goal of real, additional emission cuts.