- The Ministry of Environment, Forest and Climate Change has announced the creation of a National Designated Authority (NDA) to operationalize a carbon emissions trading regime, a mandatory requirement under Article 6 of the Paris Agreement (2015).
- The move aligns with India’s climate commitments and will enable the country to participate in international carbon markets.
Background: Paris Agreement and Article 6:
- The Paris Agreement (2015) provides a global framework for climate action.
- Article 6 allows for the creation of carbon markets where emission reduction units can be traded between countries.
- After years of negotiations, Article 6 was finalized at COP29 in Baku, Azerbaijan (November 2024).
- Establishing a National Designated Authority (NDA) is mandatory for countries seeking to participate in this mechanism.
About the National Designated Authority (NDA):
- Structure: 21-member committee chaired by the Secretary of the Environment Ministry.
- Members: Include representatives from:
- Ministry of External Affairs
- Ministry of Steel
- Ministry of New and Renewable Energy
- NITI Aayog
Functions of NDA:
- Recommend activities/projects eligible for carbon emissions trading.
- Modify project criteria based on sustainable development goals and national priorities.
- Evaluate, approve, and authorize emission reduction projects.
- Allow use of emission reduction units (ERUs) for meeting India’s Nationally Determined Contributions (NDCs).
India’s Climate Commitments (NDCs):
As part of its Nationally Determined Contributions, India has pledged to:
- Reduce GDP’s emission intensity by 45% by 2030 (from 2005 levels).
- Achieve 50% electric power capacity from non-fossil fuel sources by 2030.
- Create an additional carbon sink of 2.5–3 billion tonnes of CO₂ through afforestation by 2030.
Significance:
The NDA is expected to:
- Provide regulatory oversight for India’s carbon market.
- Facilitate international trade in emission reductions.
- Strengthen India’s position as a responsible player in global climate negotiations.
- Help achieve India’s net-zero and Viksit Bharat@2047 vision.