Why in News?
The Environment Ministry has set up a 21-member National Designated Authority (NDA), mandated under Article 6 of the Paris Agreement, to operationalise carbon markets in India, evaluate and authorise projects, and help achieve India’s 2030 NDC emission reduction targets.
Description:
- Within the Paris Agreement (2015), Article 6 provides the framework for carbon markets/emissions trading regime.
- A major point of contention in past COPs → finally resolved at COP29 (Baku, Azerbaijan, Nov 2024).
- Creation of National Designated Authority (NDA) is a mandatory requirement under Article 6.
Structure of NDA:
- 21-member committee
- Headed by: Secretary, Ministry of Environment, Forest and Climate Change (MoEFCC)
- Members include officials from:
- Ministry of External Affairs (MEA)
- Ministry of Steel
- Ministry of Renewable Energy
- NITI Aayog
Responsibilities of NDA:
- Recommend to the Union govt. a list of activities eligible for trading of emission reduction units under Article 6.
- Modify activities from time to time → align with national sustainable goals & priorities.
- Evaluate, approve, and authorise projects/activities.
- Authorise the use of emission reduction units from projects → to meet India’s NDCs.
About NDC (Nationally Determined Contributions) – India:
- Commitments under Paris Agreement:
- Reduce emission intensity of GDP 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 by 2030 through afforestation/reforestation.
Significance:
- Strengthens India’s carbon market framework.
- Ensures alignment of emission trading activities with domestic development goals + global climate commitments.
- Provides institutional mechanisms for carbon credits and sustainable financing.
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