Govt. Forms National Designated Authority to Implement Paris Agreement and Regulate Carbon Market

The Ministry of Environment, Forest and Climate Change (MoEFCC) has formally constituted the National Designated Authority (NDA) for the implementation of Article 6 of the Paris Agreement, superseding its earlier notification issued on May 30, 2022.

The decision, notified under the Environment (Protection) Act, 1986, follows significant enhancements made during recent global climate negotiations to operationalise the market and non-market mechanisms envisaged under Article 6.

India, a Party to the United Nations Framework Convention on Climate Change (UNFCCC), has already adopted the Kyoto Protocol, the Doha Amendment, and the Paris Agreement, committing itself to reducing greenhouse gas emissions under the principle of 'common but differentiated responsibilities.' The country had earlier established the National Clean Development Mechanism Authority (NCDMA) in 2004. The newly created NDA will take over as the nodal body to ensure that climate projects align with sustainable development and environmental integrity.

The Authority will be chaired by the Secretary of MoEFCC and will include senior officials from key ministries and departments. These include representatives from External Affairs, Economic Affairs, Promotion of Industry and Internal Trade, New and Renewable Energy, Power, Agriculture and Farmers Welfare, Science and Technology, Steel, Ports and Shipping, Civil Aviation, and Petroleum and Natural Gas. Members from NITI Aayog, NATCOM, and the Bureau of Energy Efficiency will also participate.

The Economic Adviser in the MoEFCC will serve as a member, while the Joint Secretary in charge of carbon markets at MoEFCC will act as the Member-Secretary responsible for day-to-day functioning.

The NDA has been tasked with evaluating, approving, and authorizing projects under Articles 6.2 and 6.4 of the Paris Agreement. It will recommend activities eligible for carbon credit trading, authorize the use of emission reduction units for India’s Nationally Determined Contributions (NDCs) and other international obligations, and maintain a registry of approved projects and certified emission reductions through the Indian Carbon Market. It will also oversee the transition of eligible pre-2020 Clean Development Mechanism projects into the Article 6 framework.

In addition, the Authority will be responsible for issuing directions relating to Article 6, assessing the feasibility of projects, and prioritizing those that best advance India’s sustainable development objectives. It will prescribe technical, financial, and developmental evaluation criteria, ensure compliance with India’s legal framework, and verify that project developers have access to reliable information through standardized templates and databases. The NDA will also approve fees at various project stages, set rules for their utilization, and establish sub-committees, technical groups, or working groups as needed.

The notification emphasises that the Authority will consider both market and non-market mechanisms, in line with international guidance, and will report to the central government on all matters relating to the Paris Agreement’s implementation. By setting up this institutional framework, India seeks to strengthen its participation in global carbon markets, expand opportunities for voluntary international cooperation, and accelerate its pathway toward achieving net-zero emissions while safeguarding national development priorities.