The MoEFCC’s National Designated Authority (NDA) is India’s key body for implementing Article 6 of the Paris Agreement, enabling carbon markets, overseeing projects, and linking to India’s NDCs for climate goals, acting as a central coordinator for carbon credit trading and sustainable development under a 21-member committee led by the Environment Secretary.
Exam Key Oriented Points:
- Mandate: Established to implement Article 6 (cooperative approaches) of the 2015 Paris Agreement, focusing on international carbon markets.
- Formation: Constituted by the Ministry of Environment, Forest and Climate Change (MoEFCC) via notification in August 2025.
- Purpose: To create India’s carbon emissions trading regime (Indian Carbon Market – ICM) and facilitate project approvals for emission reductions.
- Composition: A 21-member body, chaired by the Environment Secretary of the Ministry of Environment, Forest and Climate Change (MoEFCC), with representatives from multiple ministries/departments.
- Functions:
- Recommends eligible activities for trading emission reduction units (ERUs).
- Evaluates, approves, and authorizes projects under Article 6.
- Maintains a registry for projects and ERUs within the ICM.
- Ensures alignment with India’s Nationally Determined Contributions (NDCs) and Sustainable Development Goals (SDGs).
- Guides on non-market approaches (Article 6.8) and authorizes Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2.
- Significance: Enables India to meet its climate commitments (like 45% emission intensity reduction by 2030) through market mechanisms, promoting green investment and technology.
- Legal Basis: Operates under the Environment (Protection) Act, 1986, replacing an earlier notification from May 2022.
PRACTICE QUESTIONS
With reference to India’s National Designated Authority (NDA) for carbon markets, consider the following statements:
I. The NDA is a mandatory requirement under Article 6 of the Paris Agreement
II. It is a 21-member committee headed by the Union Minister of Environment, Forest and Climate Change
III. A key function is to evaluate, approve, and authorise projects that generate emission reduction units for use towards India’s Nationally Determined Contributions (NDCs)
Which of the statements given above is/are correct?
a) I only
b) I and II only
c) I and III only
d) I, II and III
Answer: c
Explanation: Statement I is Correct: The creation of an NDA is indeed a mandatory requirement under Article 6 of the Paris Agreement to facilitate international carbon trading mechanisms. Statement II is Incorrect: The 21-member committee is headed by the Secretary of the Environment Ministry, not the Union Minister. Statement III is Correct: Authorising the use of emission reduction units from projects towards achieving India’s NDCs is a core function of the NDA.
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