Japan has initiated a consultation process to better align its Joint Crediting Mechanism (JCM) with the carbon market rules outlined under Article 6 of the Paris Agreement. This move follows decisions made at COP29 in Baku, where global standards for carbon markets were established.
Yakushima Forests, located on Yakushima Island, are among the largest forested areas in Japan, home to ancient Japanese cedar trees, some of which are over 2,000 years old. AI generated picture.
The Ministry of Economy, Trade, and Industry (METI) announced plans to refine the JCM’s verification, registration, and crediting functions to match Article 6 requirements. The government intends to secure up to 100 million carbon credits by 2030 to meet its Paris Agreement commitments.
The JCM, operational since 2013, predates the Paris Agreement and the recent Article 6 framework, necessitating updates to ensure compatibility. Key COP29 outcomes included rules for authorising carbon credits, known as Internationally Transferred Mitigation Outcomes (ITMOs), and integrating country-level registries with the Article 6.4 mechanism.
Read more: Carbon footprint measurement: a practical guide
METI emphasised its commitment to expanding the JCM globally through partnerships while modernising its processes. The Japan International Cooperation Agency will play a pivotal role in operationalising the Article 6.4 methodologies.
The consultation document outlines draft rules for recording emissions reductions under the JCM, with stakeholders invited to provide feedback by January 6. The JCM has grown significantly, spanning 29 countries and over 300 projects in the past decade. To manage the increasing workload, METI plans to delegate administrative tasks to an external organisation under government oversight.
This overhaul represents a critical step in aligning Japan’s offset initiatives with international standards, ensuring transparency and effectiveness in supporting nature restoration.
Read more: CORSIA carbon credit shortage may spike prices to $50
At DGB Group, we help businesses across industries tackle their carbon footprints by providing access to verified, high-quality carbon credits from innovative nature-based solutions. These solutions deliver both ecological restoration and socio-economic benefits, driving meaningful progress toward sustainability. By leading in sustainable practices, companies can not only contribute to a healthier planet but also build lasting environmental and economic resilience for the future.
