Japan opens carbon credit opportunity for Indian green projects

Indian developers of green projects may gain revenue opportunities by transferring mitigation outcomes to Japanese buyers under Article 6.2 of the Paris Agreement. India has bilateral arrangements with Japan and South Korea and is discussing cooperation with Singapore, Switzerland and Sweden. Fourteen eligible activity categories include renewable energy storage, offshore wind, green hydrogen and ammonia, compressed biogas, sustainable aviation fuel, clean cooking, CCUS and technologies for hard-to-abate industries. Japan operates the Joint Crediting Mechanism, with methodologies, procedures and registry arrangements, and aims to secure 100 million tonnes of cumulative reductions and removals by 2030. Japanese credit prices are estimated at $11–$27 per tonne. These opportunities are separate from India’s domestic compliance carbon market, which currently covers 490 industrial units across seven sectors. Singapore could provide an outlet because companies may use eligible international credits against part of their carbon tax liability, although transaction prices will depend on negotiations.
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