The Government of India has established a National Designated Authority (NDA) via the Ministry of Environment, Forest and Climate Change (MoEFCC) to drive forward a national emissions trading regime. This is a requirement under Article 6 of the 2015 Paris Agreement. The NDA is a 21-member committee, chaired by the Secretary of Environment; its membership includes representatives from key ministries like External Affairs, Renewable Energy, Steel, and from bodies like NITI Aayog.

Its core function is to recommend to the Union government which activities qualify for emission reduction trading, evaluate and approve projects aimed at reducing carbon emissions, and ensure these projects align with India’s sustainability goals, national priorities, and criteria. Key among its duties are authorising emission reduction units so India can meet its Nationally Determined Contributions (NDCs), such as reducing GDP emissions intensity by 45% from 2005 levels, achieving 50% of electric power capacity from non-fossil fuel sources by 2030, and expanding carbon sinks via afforestation to absorb 2.5-3 billion tonnes of CO₂ equivalent by 2030. 

The NDA thus plays a central, enabling role in shaping India’s carbon markets and its climate action trajectory.