Azernews.Az

By Ayya Lmahamad

Azerbaijan and Japan have reached an agreement on the Joint Credit Mechanism (JCM), Azernews reports.

In this regard, Azerbaijani Ecology and Natural Resources Minister Muxtar Babayev and Japanese Ambassador Junichi Wada signed a memorandum of understanding on cooperation.

The Japanese government has set a goal of increasing the number of partner countries to 30 by 2025 to widely expand the joint credit mechanism. With the signing of this memorandum of understanding, Azerbaijan has become the 20th partner country for the mechanism.

“It is hoped that the JCM will lead not only to the expansion of measures aimed at reducing gas emissions in Azerbaijan but also to further increase economic cooperation between the two countries, such as the implementation of projects in the ‘green’ sector and investment by Japanese companies,” Japanese embassy in Azerbaijan said in a statement.

The JCM is a system to cooperate with countries for reducing greenhouse gas emissions, in which the result of the reduction is assessed as a contribution by both partner countries and Japan.

The 11th meeting of the State Commission on Economic Cooperation between Azerbaijan and Japan was held in Baku on September 5.

Diplomatic relations between the two countries were established on September 7, 1992. Currently, Azerbaijan and Japan are cooperating in different sectors of the economy. Japanese companies in Azerbaijan work in oil and gas as well as in agricultural sectors. The trade turnover between the two countries amounted to $274.8 million in 2021.

In 2021, Azerbaijan’s Energy Ministry and Japan’s TEPSCO company signed an agreement on the establishment of a green energy zone in the newly-liberated lands.

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Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad

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