Using JCM carbon projects to hit your climate goals 

You’ve set bold climate targets. Now, it’s time to deliver with credibility, speed, and measurable impact. The Joint Crediting Mechanism (JCM), a bilateral carbon crediting framework launched by the Japanese government, helps you do exactly that.  

Open to both Japanese and non-Japanese companies, the JCM allows you to earn carbon credits by supporting carbon projects in JCM partner countries that reduce or remove greenhouse gas (GHG) emissions. These credits can help meet your decarbonization goals, boost ESG performance, and prepare for systems like Japan’s Green Transformation Emissions Trading Scheme (GX ETS)—which will link corporate emissions caps to credit use and transition into a full compliance carbon scheme in 2026. Initially, GX ETS will start with Scope 1 and gradually include Scope 2 and 3 for the same reporting purposes.  

Whether you develop your own carbon project or buy credits from an existing one, the JCM offers a flexible, high-integrity solution. Projects are implemented across Asia, Africa, Latin America, Europe, and the Pacific, often leveraging technologies and expertise. Depending on the JCM scheme, in return for your financial or technical input, you can receive a share of the JCM carbon credits generated, while the project can contribute to Japan and partner countries’ Nationally Determined Contributions (NDCs).  

The JCM gives you two ways to act: you can either buy credits from existing projects or develop your own JCM carbon project. You can co-create a climate project in one of Japan’s 30 partner countries, from Vietnam to Kenya to Mexico. These projects often involve technologies like solar PV, industrial energy efficiency, regenerative agriculture, clean cookstoves, or waste-to-energy systems.    

This option gives you:  

• A direct role in project design and delivery  

• A stream of verified credits, aligned to your contribution  

• Tangible local impact, from job creation to cleaner energy  

• A revenue stream from the project itself 

The right partner will help you manage key technical and administrative steps:  

• Scoping the emissions reduction opportunity  

• Conducting feasibility studies and stakeholder engagement  

• Drafting and submitting the Project Design Document (PDD)  

• Managing validation, monitoring, and third-party verification    

It’s a structured, transparent process—and one that delivers long-term returns. If you need to act fast—or aren’t ready to build—a verified credit purchase may be your best fit. However, not all credits generated from JCM projects are available for purchase by private entities. 

JCM credits are:  

• Fully verified by accredited third parties  

• Tracked via a secure registry  

• Possibility to use in your disclosures or net-zero roadmap   

This route is ideal for businesses looking to balance hard-to-abate emissions, meet short-term goals, or expand their climate portfolios with high-quality credits.  

The Joint Crediting Mechanism isn’t just another offset scheme. It’s a collaborative platform built for real-world impact. It enables:    

• Cost-effective, internationally sourced emissions reduction  

• Support across Scope 1, 2, and 3, depending on your project and location   

• Verified, reportable action that strengthens ESG claims  

• Alignment with Japan’s GX-ETS and global carbon accounting norms  

• Alignment with Paris Agreement 

 What makes the JCM different from typical credit purchases or standalone carbon projects is its shared model: You don’t carry the cost or risk alone. Japan or the private sector partner can co-invest, bringing financing, technology, and credibility to every project. You share the credits, but also lower development costs, faster delivery, and stronger results.  

It’s a model that delivers value across the board. Host countries benefit from clean technology, reduced costs, and projects aligned with local goals like energy access, improved air quality, or job creation. Japan accelerates global decarbonization while meeting its climate targets. Your company gets high-quality, transparent credits with built-in safeguards, co-benefits, and measurable climate outcomes. 

Using the JCM—whether you’re building or buying—involves technical and regulatory steps. The right partner can keep it simple and help you move fast.  

Look for support from teams with:  

• Experience across JCM partner countries and sectors  

• A track record in feasibility studies and credit forecasting  

• Deep understanding of PDD drafting and methodology alignment  

• Relationships with host governments and validation bodies  

• Proven ability to manage credit issuance and reporting  

If you're purchasing credits, make sure your provider offers registry-tracked units and robust due diligence to match them with your ESG or compliance needs.