Oman and Japan Launch Carbon-Credit Framework: What It Means for Green Investment and Business Growth in Oman
Oman and Japan have signed a memorandum of cooperation to establish a Joint Crediting Mechanism (JCM), creating a formal framework to promote low-emission projects within the Sultanate. This initiative paves the way for Japanese technology transfer and capacity-building support aimed at reducing carbon emissions in Oman.
The memorandum was signed on Thursday by Eng. Salim bin Nasser Al Aufi, Oman’s Minister of Energy and Minerals, and Kiyoshi Serizawa, Japan’s Ambassador Extraordinary and Plenipotentiary to Oman.
The JCM is designed to assist Oman in reducing or removing greenhouse gas emissions, supporting sustainable development, and fulfilling its climate commitments under the Paris Agreement. Simultaneously, it allows Japan to count a portion of the resulting carbon credits towards its own nationally determined contributions.
This agreement provides Oman with a new institutional platform to attract decarbonization-related projects, products, systems, services, and infrastructure. The memorandum specifically highlights the adoption of advanced low-carbon technologies and the implementation of mitigation measures within Oman.
A joint committee, comprising representatives from both governments, will oversee the mechanism’s implementation. The committee’s responsibilities include establishing rules and guidelines for project procedures, methodologies, project design documents, monitoring, third-party validation and verification, as well as the allocation of carbon credits generated under the mechanism.
Credits issued from emission reductions and removals under the JCM will contribute to the climate goals of both countries, with corresponding adjustments to avoid double counting, in accordance with Article 6.2 of the Paris Agreement.
Japan will also provide technical assistance and capacity-building support to Oman for managing the mechanism, underscoring the cooperative, practical nature of the partnership beyond policy alignment.
Both governments emphasized that the mechanism will operate in compliance with their national laws and regulations, ensuring transparency, environmental integrity, simplicity, and practicality to encourage effective emissions reduction and removal efforts.
As of March 2026, the JCM has been established with 32 countries, including Mongolia, Bangladesh, Ethiopia, Kenya, Vietnam, Indonesia, Saudi Arabia, the United Arab Emirates, India, and now Oman, which becomes the 32nd participant.
Under the Paris Agreement, countries are required to communicate their emissions reduction targets every five years, reinforcing ongoing global climate action.
تحليل خاص من عمانت | تصفح سوق عُمان
The Oman-Japan Joint Crediting Mechanism (JCM) presents a strategic opportunity for Omani businesses to access advanced Japanese low-carbon technologies and capacity-building support, positioning Oman as a hub for sustainable development and decarbonisation projects. Smart investors and entrepreneurs should consider emerging clean energy, carbon management, and green infrastructure sectors as promising avenues, while recognizing the potential regulatory and compliance landscape shaped by international climate commitments. This collaboration also mitigates climate-related risks by aligning with global environmental standards, enhancing Oman’s competitiveness in the evolving green economy.
