SYLLABUS

GS-3: Conservation, environmental pollution and degradation, environmental impact assessment.

Context: Recently, the Ministry of Environment, Forest and Climate Change has constituted a National Designated Authority (NDA), to facilitate a carbon emissions trading regime.

National Designated Authority (NDA) 

• The NDA is the national body responsible for authorising, regulating, and overseeing carbon market projects to enable emissions trading mandated under Article 6.4 of the Paris Agreement.
• Article 6.4 mechanism is also known as the Paris Agreement Crediting Mechanism establishes a framework for generating and trading high-quality carbon credits to foster international cooperation on climate action and mobilize private and public sector investment.
• Environment Ministry has constituted a 21-member committee, headed by the Secretary of the Environment Ministry.
  Representatives include officials from the Ministry of External Affairs, Ministry of Renewable Energy, NITI Aayog and Steel Ministry among others.

Functions of NDA

• The Authority will be accountable for receiving projects and activities for evaluation, approval, and authorisation at different stages of their implementation.
• It will authorise the use of emission reduction units from these projects towards India’s Nationally Determined Contribution (NDC) targets and other international mitigation purposes.
  NDCs are country-specific commitments to reduce emissions, lower carbon concentrations and shift towards renewable energy sources.
• NDA recommend eligible activities for emissions trading under Article 6, aligned with national priorities and sustainable goals.
• It will track the progress of projects to ensure they comply with the principles laid down by the Government of India.

The Paris Agreement

• It is a legally binding international treaty on climate change, adopted in 2015 by 196 countries to limit global warming to well below 2 degrees Celsius, preferably to 1.5 degrees, compared to pre-industrial levels. 
• Article 6 of the Paris Agreement: It enables international cooperation to tackle climate change and to unlock financial support for developing countries.
• There are three components to Article 6 are Article 6.2, 6.4 and 6.8.
  Article 6.2: Provides accounting and reporting guidance for Parties to use internationally transferred mitigation outcomes towards their NDCs.
  Article 6.8: Provides opportunities for non-market-based cooperation for enhancing climate action.

Source
The Hindu
Green Climate
UNFCCC