India Forms National Authority to Drive Carbon Trading Under Paris Agreement

India has established a 21-member National Designated Authority (NDA) under the environment ministry to oversee carbon trading and related market-based mechanisms in line with its commitments under the Paris Agreement. Headed by the Union environment secretary, the authority was officially constituted on August 22 and is tasked with implementing Article 6 provisions that cover carbon credit trading through both market and non-market mechanisms. The NDA will play a central role in recommending activities eligible for trading emission reduction units, while also maintaining a registry of approved projects and their verified carbon reductions through the Indian Carbon Market. Its functions include evaluating, approving, and authorising projects that align with greenhouse gas mitigation and carbon removal activities. This step strengthens India’s framework for achieving sustainable development and environmental integrity. Comprising representatives from ministries such as finance, power, civil aviation, petroleum, agriculture, and renewable energy, the new authority replaces a similar body set up in May 2022. India now joins 113 countries — including the UK, France, Germany, China, and Brazil — that have established such authorities and notified the UN climate body.