Tokyo: Japan is set to offer its cutting-edge green technologies to India to combat climate change and help reduce emissions which would earn Japanese firms carbon credits, a report has said.
Japan plans to sign an agreement on green technologies with India at next month's summit meeting in Tokyo between Indian Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe.
The deal will allow Japanese companies to earn carbon credits by helping the emerging Asian giant to reduce greenhouse gas emissions, the Nikkei newspaper reported.
The report said that under the joint crediting mechanism (JCM), "Japanese companies, using their state-of-the-art environmental technologies, will be able to earn carbon credits in return for helping developing countries reduce greenhouse gas emissions."
Carbon credits are the rights to emit carbon dioxide and other greenhouse gases. Japan has so far signed agreements with 11 countries, including Vietnam, Indonesia, Ethiopia and Kenya, to launch the JCM.
Japanese companies will be allowed to count the carbon credits as reductions in their own greenhouse gas emissions or sell them to the Japanese government.
Japan hopes that the planned launch of the JCM with India will not only help India cut greenhouse gases but also create new business opportunities for Japanese companies there and help boost the Japanese economy.
Japan's Ministry of Economy, Trade and Industry has conducted feasibility studies on possible JCM projects in developing countries as part of efforts to promote the scheme.
Nippon Steel & Sumitomo Metal, Marubeni and other Japanese companies have participated in feasibility studies on possible JCM projects in India, including the introduction of high-performance industrial furnaces and energy-efficient air-conditioning systems, the report said.