Centre finalises National Designated Authority to kick-start carbon markets , Pg12

Key Highlights:

• The Ministry of Environment, Forest and Climate Change has announced a National Designated Authority (NDA) to enable a carbon emissions trading regime.
• The creation of the NDA is a mandatory requirement under Article 6 of the 2015 Paris Agreement.
• The NDA is a 21-member committee headed by the Secretary of the Environment Ministry.
• The NDA’s responsibilities include recommending activities for trading emission reduction units and authorizing the use of emission reduction units towards achieving Nationally Determined Contributions (NDC).
• India’s NDC commits to reducing its GDP’s emission intensity by 45% by 2030 from 2005 levels.

Detailed Insights:

• Article 6 of the Paris Agreement defines the framework for an emissions trading regime, which was a point of contention among countries until it was passed at COP29 in Baku, Azerbaijan in November 2024.
• The NDA includes representatives from the Ministries of External Affairs, Steel, and Renewable Energy, and NITI Aayog, ensuring a multi-sectoral approach to carbon emission reduction.
• The NDA will evaluate and approve projects for trading emission reduction units, aligning them with national sustainable goals, country-specific criteria, and other national priorities.
• India's NDC also aims to achieve 50% electric power capacity from non-fossil fuel sources by 2030, and create a carbon sink equivalent to 2.5-3 billion tonnes of carbon dioxide by 2030 through afforestation.

Key Concepts Involved:

• National Designated Authority (NDA): A body established to oversee and regulate carbon emissions trading activities within a country, as required by the Paris Agreement.
• Article 6: A section within the Paris Agreement that defines the rules and guidelines for international cooperation on carbon emission reductions through market mechanisms.
• Nationally Determined Contributions (NDC): Commitments made by individual countries to reduce their emissions and mitigate climate change, as part of the Paris Agreement.