Page 61 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

India and Japan share a strong history of economic, commercial and cultural cooperation. The current
MoC aims to bolster the partnership between India and Japan on Climate Change Mitigation. The low-
carbon technologies approved by the National Designated Agency for Implementation of Article 6 of Paris
Agreement (NDAIAPA), under Article 6.2, form an important component of India’s long-term low carbon
development strategy to achieve Net Zero by 2070.

Presently, this strategy is cost intensive and requires viability gap funding. The JCM will encourage the
flow of investment, technology assistance, including technology transfer and capacity building support for
the implementation of projects involving these low carbon technologies. It will also develop domestic
ecosystem and partnerships to localise low carbon technologies and associated high technology
interventions related to equipment, machinery, products, systems and infrastructure, paving the way for
their large-scale deployment.

The Memorandum of Cooperation would further facilitate the implementation of projects contributing to
greenhouse gas (GHG) reduction or removal and sustainable development in India. It will also enable the
international trading of carbon credits generated from such projects under Article 6.2 of the Paris
Agreement with Japan and other countries on similar lines, without adversely impacting India’s NDC
commitments.

The MoEFCC has also received authorisation from the Union Cabinet to finalize the Rules of
Implementation (RoI) and for signing agreements with other countries on similar lines under Article 6.2 of
Paris Agreement, in consultation with the concerned Ministries of Government of India and Ministry of
External Affairs (MEA).

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Research, analysis & compilation by:

Economic Policy & Planning Team - FIPI

Email: pankhuri@fipi.org.in

Note: The information contained herein is compiled from various sources considered reliable, but its
accuracy and completeness are not warranted, nor are the opinions and analyses that are based on it. FIPI
is not responsible for any errors or omissions, nor shall it be liable for any loss or damage incurred by
reliance on information or any statement contained herein. While reasonable care has been exercised to
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please be informed immediately.

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