• India and Japan have signed a Joint Credit Mechanism (JCM) agreement under Article 6.2 of the Paris Agreement to advance carbon trading, attract green investments, and accelerate sustainable innovation.
• The agreement, inked between India’s Ministry of Environment, Forest and Climate Change and the Government of Japan, is part of broader bilateral deals worth ¥10 trillion (approx. ₹6 trillion).
•  The JCM comes at a time of shifting global trade dynamics, with the US imposing tariffs on Indian goods and China tightening its rare earth supplies.
• The pact gives India a strategic alternative to secure clean energy, strengthen manufacturing resilience, and deepen technological partnerships in areas including artificial intelligence, defence, semiconductors, and critical minerals.