National Designated Authority (NDA) to Enable Carbon Emissions Trading Regime

National Designated Authority (NDA) to Enable Carbon Emissions Trading Regime Latest News

The Ministry of Environment, Forest and Climate Change recently announced a National Designated Authority (NDA), a mandatory requirement under the provisions of the 2015 Paris Agreement, to enable a carbon emissions trading regime.

About National Designated Authority (NDA) to Enable Carbon Emissions Trading Regime

• Within the Paris Agreement, a section called Article 6 defines the contours under which such an emissions trading regime or a market can take shape. 
• A long-standing bone of contention among countries, Article 6 was finally passed at the 29th edition of the climate Conference of the Parties (COP29) in Baku, Azerbaijan, in November 2024.
• The creation of an NDA is a mandatory requirement under Article 6.
• NDA will be a 21-member committee headed by the Secretary of the Environment Ministry. 
• Representatives include officials from the Ministries of External Affairs, Steel, and Renewable Energy, and NITI Aayog.
• The NDA’s responsibilities include 
  • recommending to the Union government a list of activities that can be considered for the trading of emission reduction units from projects under Article 6;
  • modifying them from time to time in line with national sustainable goals, country-specific criteria, and other national priorities; 
  • receive projects or activities for evaluation, approval, and authorisation; 
  • authorise the use of emission reduction units from projects for use towards achievement of Nationally Determined Contributions (NDC).
• The NDC refers to commitments by countries to reduce emissions by diverting their energy consumption towards renewable energy sources and taking action to reduce carbon concentrations in the atmosphere.
• India’s NDC commits to reducing its GDP’s emission intensity by 45% by 2030 from 2005 levels, achieving 50% electric power capacity from non-fossil fuel sources by 2030, and creating an additional carbon sink equivalent to 2.5-3 billion tonnes of carbon dioxide by 2030 through afforestation.

Source: TH

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