Joint Crediting Mechanism is a proposal by Government of Japan to push Japanese private sector organizations to invest on Low Carbon Development activities in Bangladesh by giving incentives. JCM activities cover many sectors including energy efficiency, renewable energy, deforestation and forest degradation, waste management, fugitive emission, and manufacture industry. Bangladesh hopes JCM can be an effective alternative to supported GHG emissions reduction activities that conducted by both Bangladesh private sectors and public sectors and supporting economic growth without overriding environmental sustainability.
After significant negotiations, the Government of Bangladesh and the Government of Japan signed a bilateral cooperation agreement on 19 March 2013. Secretary, Ministry of Environment and Forests (MoEF), Bangladesh represented Bangladesh Government while the Ambassador, Embassy of Japan in Bangladesh represented Japan Government. This event was starting line for JCM development and marked the official start of cooperation for JCM programs in Bangladesh.