Notification for constitution of National Designated Authority

## Report on National Designated Authority for the Implementation of Article 6 of Paris Agreement **1. Executive Summary:** This report analyzes a new government policy notification regarding the establishment of a National Designated Authority (NDA) for the implementation of Article 6 of the Paris Agreement. The core purpose is to establish a national authority responsible for overseeing and authorizing projects and actions related to international cooperation on climate change mitigation, as outlined in Article 6 of the Paris Agreement. Key findings indicate that the NDA will be responsible for evaluating, approving, and monitoring projects aimed at reducing greenhouse gas emissions, ensuring sustainable development, and contributing to India's Nationally Determined Contributions (NDCs). The notification also outlines the NDA's composition, powers, and functions. **2. Introduction:** This report aims to provide an informative overview of the Indian government's notification concerning the establishment of a National Designated Authority (NDA) for the implementation of Article 6 of the Paris Agreement. This analysis is based solely on the text provided in the notification, offering insights into the NDA's mandate, structure, and anticipated role. **3. Policy Overview:** * This is a **New Policy**. * **Core Objective(s):** The primary objective is to establish a National Designated Authority (NDA) to implement Article 6 of the Paris Agreement, thereby enabling India to participate in international cooperation mechanisms for climate change mitigation and achieving its NDCs. This includes ensuring sustainable development and environmental integrity within such projects. **4. Background and Rationale:** This policy addresses the need for a designated national authority to facilitate India's participation in the mechanisms established under Article 6 of the Paris Agreement. The text highlights India's commitment to the United Nations Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol, and the Paris Agreement. Establishing the NDA is crucial for participating in international cooperative approaches to reduce greenhouse gas emissions and fulfill the country’s NDCs, while also ensuring that these projects align with sustainable development goals. **5. Key Provisions / Changes:** As a new policy, the key provisions involve establishing the NDA and defining its structure and responsibilities. * **Establishment of the NDA:** The policy establishes the National Designated Authority for the Implementation of Article 6 of the Paris Agreement. * **Composition of the NDA:** The NDA consists of representatives from various government ministries and organizations, including the Ministry of Environment, Forest and Climate Change (MoEFCC), Ministry of External Affairs, Department of Economic Affairs, Department for Promotion of Industry and Internal Trade, Ministry of New and Renewable Energy, Ministry of Power, Ministry of Agriculture and Farmers Welfare, Ministry of Science and Technology, NITI Aayog, the Economic Adviser/Joint Secretary Climate Change of the MoEFCC, and the Director of the Climate Change Division, Ministry of Environment, Forest and Climate Change, who serves as the Member-Secretary. * **Powers and Functions of the NDA:** The NDA is mandated to: * Issue directions relating to Article 6 of the Paris Agreement. * Evaluate and approve projects or activities for host Party endorsement. * Authorize the use of emission reduction units toward NDCs or other international mitigation purposes and furnish information to relevant bodies. * Assess the likelihood of successful implementation and alignment with national sustainable development objectives, prioritizing projects accordingly. * Recommend additional requirements to ensure project compatibility with national priorities and legal frameworks. * Prioritize projects with higher sustainable development benefits in cases of competing proposals. * Conduct financial reviews to prevent undervaluation of emission reduction units. * Maintain a registry of approved Article 6 projects, their emission reduction potential, and confirm realization of that potential. * Ensure the transition of eligible Certified Emission Reduction units from pre-2020 Clean Development Mechanism projects and capture new issues under Article 6.4 emission reduction units. * Carry out activities to provide project developers with reliable information related to Article 6. * Invite officials and experts for technical and professional inputs. * Recommend guidelines for project consideration and host country approval to the Central Government. **6. Target Audience and Stakeholders:** The target audience and stakeholders include: * Project developers involved in climate change mitigation activities. * Government ministries and departments involved in climate change policy and implementation. * International organizations and entities involved in climate finance and carbon markets. * Financial institutions and consultancy organizations. * Non-governmental organizations and civil society involved in sustainable development. * Legal professionals, industry, and commerce. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Ministry of Environment, Forest and Climate Change (MoEFCC) is the primary responsible agency, with the Secretary of the Ministry serving as the Chairperson of the NDA. The Director of the Climate Change Division within the MoEFCC serves as the Member-Secretary and is responsible for day-to-day activities. * **Timelines/Procedures:** The text does not specify timelines or detailed procedures. However, it implies that the NDA will establish processes for project evaluation, approval, and monitoring, as well as for the issuance and tracking of emission reduction units. Reporting will be done to the Apex Committee for Implementation of Paris Agreement (AIPA) or the Central Government. **8. Expected Outcomes / Impact of Changes:** The intended outcomes of establishing the NDA include: * Facilitating India's participation in international carbon markets and cooperative approaches for climate change mitigation. * Attracting investments in sustainable development projects that reduce greenhouse gas emissions. * Ensuring that climate change mitigation projects align with national sustainable development priorities. * Enhancing transparency and accountability in the implementation of Article 6 of the Paris Agreement. * Contributing to India's achievement of its Nationally Determined Contributions (NDCs). **9. Conclusion:** The establishment of the National Designated Authority (NDA) for the Implementation of Article 6 of the Paris Agreement represents a significant step in India's commitment to addressing climate change through international cooperation. The NDA's mandate to evaluate, approve, and monitor climate mitigation projects, while ensuring sustainable development, will play a crucial role in attracting investments and contributing to the achievement of India's NDCs. The effectiveness of the NDA will depend on the clarity of its procedures, the engagement of stakeholders, and its ability to balance climate mitigation goals with national development priorities.

Key Entities Referenced