India has notified the National Designated Authority for the Implementation of the Paris Agreement (NDAIAPA) vide Gazetted Notification dated 30.05.2022.
- The Authority is mandated inter-alia to take decisions in regard to the type of projects that may take part in international carbon market under Article 6 mechanisms.
- This is in the backdrop of the Paris Agreement Rulebook being finalized in respect of Article 6 which focuses on carbon trading through bilateral/cooperative approaches and international market mechanisms.
Activities listed
- Renewable energy with storage (only stored component), Solar thermal power, Off- shore wind, Green Hydrogen, Compressed bio-gas, Emerging mobility solutions like fuel cells, High end technology for energy efficiency, Sustainable Aviation Fuel, Best available technologies for process improvement in hard to abate sectors, Tidal energy, Ocean Thermal Energy, Ocean Salt Gradient Energy, Ocean Wave Energy and Ocean Current Energy, High Voltage Direct Current Transmission in conjunction with the renewal energy projects, Green Ammonia, Carbon Capture Utilization and Storage.
Article 6 of the Paris Agreement
- Article 6 of the Paris Agreement allows countries to voluntarily cooperate with each other to achieve emission reduction targets set out in their NDCs.
- This means that, under Article 6, a country (or countries) will be able to transfer carbon credits earned from the reduction of GHG emissions to help one or more countries meet climate targets.
- Within Article 6, Article 6.2 creates the basis for trading in GHG emission reductions (or “mitigation outcomes”) across countries.
Double counting
- It is critical to avoid double counting so that global emission reductions are not overestimated.
- The agreement on Article 6 established an accounting mechanism known as “corresponding adjustment,” to ensure that double counting does not occur.
