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Explained: India-Japan climate agreement and its significance
India and Japan signed a major climate agreement earlier in August 2025, which was announced during PM Modi's visit to Japan.
The move lets Japanese entities invest in low-carbon tech projects in India, earning carbon credits in return.
It's a win-win: Japan gets help meeting its climate goals, while India gets fresh tech and investment for a cleaner future.
New authority to be set up in India
India will set up a new authority to approve these green projects and keep the carbon market running smoothly.
The agreement also opens doors for trading carbon credits internationally under the Paris Agreement—so both countries get more flexibility as they work toward their climate promises.