New Delhi, June 17 -- India and Japan have formally adopted the rules of implementation for their Joint Crediting Mechanism (JCM), the ministry of environment, forest and climate change said on Tuesday, moving the bilateral climate partnership from framework to operation.

Under the JCM, a Japanese company may fund a project in India that cuts or removes greenhouse gas emissions; those reductions are independently verified and converted into carbon credits, which can then be transferred between the two countries and counted toward their respective climate pledges.

The rules were adopted on June 8 under Article 6.2 of the Paris Agreement - the provision that permits countries to trade emission reductions bilaterally to meet their National...