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India-Japan carbon market breakthrough: A turning point under Article 6.2
The Daily Guardian
|October 10, 2025
Recently, India crossed a decisive threshold in its climate journey.
With the signing of its first Memorandum of Cooperation under Article 6.2 of the Paris Agreement with Japan, the Government of India has officially opened the doors to international carbon trading. This milestone, led by the Ministry of Environment, Forest and Climate Change (MoEFCO), is more than just a policy agreement. It is the moment India’s long-discussed carbon market became operational.
The timing is significant. Just weeks before this breakthrough, on July 14, 2025, MoEFCC had issued amemorandum listing eligible activities under Article 6.2. For the first time, businesses, developers, and investors were given clarity on which sectors and technologies can generate credits under this framework. From renewable energy with storage, offshore wind, and solar thermal to green hydrogen, sustainable aviation fuel, compressed bio-gas, ocean energy, high endenergy efficiency, green ammonia, and carbon capture and storage, the government provided a clear playbook. This precision was not accidental. It was a deliberate move to signal readiness to both domestic and international stakeholders.
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