# How are JCM credits split between the Indian project and Japan?

Canonical: https://senseible.earth/answers/india-japan-jcm-credit-sharing

There is no fixed split. The Joint Committee decides it for each project, with prior approval of both governments, based on each side's contributions, including private and public finance, subsidies, in-kind technical help and terms of finance, and on how far carbon revenue improves the project's unit economics.

## What the Joint Committee weighs

- Each side's contribution to the reductions: private and public finance, direct and indirect costs, government subsidies, in-kind technical and operational help, and the terms of finance.
- How much the expected carbon revenue would improve the project's unit economics.
- Both governments evaluate these internally before the committee decides.

## Where the split gets fixed

1. The draft PDD sets out the proposed sharing of credits.
2. At registration you submit a credit allocation form.
3. Both governments approve the share in their letters of authorization; the committee can register the allocation as proposed or with revisions.
4. At each issuance, credits follow the approved allocation, based on contributions made or amounts paid; the committee can again revise.

## Fewer credits than your reduction

Reference emissions are set below business-as-usual emissions with a conservative buffer. The gap between business-as-usual and reference emissions is not credited; it is how the project contributes to India's own target. The split applies only to what is left.

## Example: splitting one year's credits

- Business-as-usual: 12,000 t CO2e; reference emissions: 10,800 t; project emissions: 7,000 t
- Reduction against business-as-usual: 5,000 t, of which credited: 10,800 minus 7,000 = 3,800 t
- Japanese side funded most of the equipment; committee approves 60:40
- Japan's share: 2,280 t, with a corresponding adjustment by India; India side: 1,520 t

Every figure, including the 60:40 split, is an example; the Rule of Implementation sets criteria, not a ratio.

## What Senseible does here

Senseible keeps a plant's energy and fuel records month by month, traceable to source bills, which is the evidence behind project emissions that a third-party entity checks. It does not prepare or file JCM documents.

- [JCM crediting period](https://senseible.earth/answers/india-japan-jcm-crediting-period)
- [JCM credits and other registries](https://senseible.earth/answers/india-japan-jcm-credits-elsewhere)
- [What a corresponding adjustment is](https://senseible.earth/answers/what-is-a-corresponding-adjustment)
- [Carbon credits](https://senseible.earth/carbon-credits)

Sources: [Rule of Implementation of the Joint Crediting Mechanism between India and Japan (MoEFCC)](https://moef.gov.in/storage/tender/1784699228.pdf)

Last reviewed 2026-11-03. The Joint Committee can modify the Rule of Implementation with both governments' written approval, and the secretariat issues detailed procedures and forms; check the latest versions on moef.gov.in.