NEWS

• The Ministry of Environment, Forest and Climate Change (MoEFCC) has notified the formation of a National Designated Authority (NDA), fulfilling a key requirement under the 2015 Paris Agreement.
• The NDA is essential to operationalise carbon markets under Article 6, which provides the framework for international carbon trading.
• Article 6 was finalised after years of negotiation at the COP-29 in Baku, Azerbaijan (Nov 2024).

HIGHLIGHTS

Composition of the NDA

• 21-member committee, chaired by the Environment Secretary.
• Includes representatives from:
  • Ministries of External Affairs, Steel, Renewable Energy
  • NITI Aayog and other government departments

Functions of the NDA

1. Recommend Eligible Activities
   • Suggest activities/projects that qualify for emission reduction units (ERUs).
   • Align them with national priorities and sustainable goals.
2. Project Evaluation & Approval
   • Receive and authorise projects for participation in carbon markets.
   • Periodically revise eligibility criteria.
3. NDC Alignment
   • Authorise ERUs to be counted towards India’s Nationally Determined Contributions (NDCs).

India’s NDC Commitments (by 2030)

• Reduce emission intensity of GDP by 45% (from 2005 levels).
• Achieve 50% electric power capacity from non-fossil fuel sources.
• Create an additional carbon sink of 2.5–3 billion tonnes of CO₂ through afforestation.

Significance

• Establishes the institutional framework for carbon trading in India.
• Provides opportunities for Indian industries to participate in global carbon markets.
• Strengthens India’s efforts towards meeting climate goals under the Paris Agreement.