National Designated Authority (NDA) for Carbon Markets

The Ministry of Environment, Forest and Climate Change (MoEFCC) has notified a National Designated Authority (NDA) to operationalise carbon markets under the Paris Agreement (2015).

About National Designated Authority (NDA)

• NDA is a mandatory requirement under Article 6, of the Paris Agreement,  which defines rules for international carbon trading.
• Establishment: 22 August 2025.
• Chaired by: Secretary, MoEFCC.
• Composition: 21-member committee including reps from:
  • Ministry of External Affairs
  • Ministry of New and Renewable Energy
  • NITI Aayog
  • Ministry of Steel
• Majority representation: Ministry of Environment, Forest and Climate Change (MoEFCC)
• Functions of NDA
  • Project Recommendation: Identifies and recommends activities eligible for emission reduction projects under Article 6.
  • Evaluation & Approval: Reviews, approves, and authorises projects generating Emission Reduction Units (ERUs).
  • Alignment with Goals: Ensures ERUs are consistent with sustainable development goals (SDGs) and India’s NDC commitments.
  • Criteria Modification: Updates project eligibility norms as per evolving national priorities.
  • Carbon Credit Authorisation: Approves use of carbon credits to meet India’s NDC targets.

Significance of NDA for India

• Global Role: Enhances India’s participation in the international carbon trading system.
• Transparency: Ensures credibility in carbon credit generation and utilisation.
• Low-Carbon Transition: Supports India’s shift towards renewables and green economy.
• Financial Incentives: Generates revenue streams for emission reduction projects.

India’s NDC Commitments (by 2030)

• Emission Reduction: Reduce emission intensity of GDP by 45% from 2005 levels.
• Non-Fossil Capacity: Achieve 50% cumulative electric power capacity from non-fossil sources.
• Carbon Sink: Create additional carbon sink of 2.5–3 billion tonnes CO₂ equivalent through afforestation.

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