India and Japan are on the brink of establishing a joint crediting mechanism (JCM) to address their climate ambitions and build effective carbon markets. The JCM involves deploying decarbonization technologies in India through Japanese investments to reduce greenhouse gas emissions and promote sustainable development under the Paris Agreement. This bilateral mechanism allows Japanese companies to install advanced carbon reduction technologies in India and receive carbon credits in return, benefitting both countries in meeting their nationally determined contributions. The JCM aims to direct investments towards underfunded sectors, such as solar thermal energy, green hydrogen, sustainable aviation fuel, and renewable energy with storage, supporting sustainable development and creating jobs in both nations. The JCM partnership between India and Japan is seen as a significant step towards achieving low or zero carbon emissions by providing access to clean energy technologies that are otherwise costly or unavailable. Japan's role in subsidizing these technologies helps India transition towards cleaner energy sources, with the ultimate goal of India adopting and scaling these technologies independently. Under Article 6.2 of the Paris Agreement, the JCM operates within a framework that allows for collaboration on emission reductions and the transfer of Internationally Transferred Mitigation Outcomes between countries, following stringent accounting rules to prevent double counting. While the JCM holds the potential to transform India's energy sector and drive economic growth through the adoption of renewable energy technologies, challenges such as the risk of double counting need to be carefully addressed for the success of the projects. The partnership is expected to deepen India-Japan ties and enhance collaboration in various sectors, strengthening their strategic relationship amidst global climate challenges.