Source: TH
Context:
The Ministry of Environment, Forest and Climate Change has set up a National Designated Authority (NDA) as mandated under Article 6 of the Paris Agreement (2015) to facilitate a carbon emissions trading mechanism.
Key Highlights:
- Mandate: Required under Article 6 of the Paris Agreement, which provides the framework for an international carbon market.
- Approval at COP29: Article 6 operational rules were finalised at the 29th Climate COP in Baku, Azerbaijan (Nov 2024).
- Composition:
- 21-member committee.
- Headed by Secretary, Environment Ministry.
- Includes officials from External Affairs, Steel, Renewable Energy Ministries, and NITI Aayog.
- Functions of NDA:
- Recommend activities for trading of emission reduction units (ERUs).
- Modify project lists in line with national sustainability goals and priorities.
- Evaluate, approve, and authorise carbon trading projects.
- Facilitate use of ERUs towards achieving India’s Nationally Determined Contributions (NDCs).
Carbon Emissions Trading
Carbon emission trading, also known as cap-and-trade, is a market-based mechanism to reduce greenhouse gas (GHG) emissions. It allows countries, companies, or entities to buy and sell emission allowances or credits within a regulated framework.
