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SSCUPSC & State PSC

National Designated Authority set up for carbon trading

27 August 20251 min read
ENVIRONMENT & ECOLOGYNationalDesignatedAuthority set upfor carbon trading27 August 2025safalsetu.com

Why in the news

The Environment Ministry created a national body to enable carbon emissions trading.

Key facts

  • Members include officials from External Affairs, Steel, Renewable Energy and NITI Aayog.
  • Recommends activities for trading emission reduction units (ERUs).
  • Approves and authorises projects, and aligns ERUs with India’s NDCs.

About carbon trading

Also called cap-and-trade, a market tool where entities buy and sell emission allowances or credits.

Exam angle

  • Treaty clause: Article 6.

Test yourself

1. Which Paris Agreement article requires a National Designated Authority for carbon trading?

Article 6 gives the framework for the international carbon market.

2. Where were the Article 6 operational rules finalised?

The rules were settled at the 29th COP in Baku, Azerbaijan, in November 2024.

3. Who heads India's 21-member National Designated Authority for carbon trading?

It is headed by the Secretary of the Environment Ministry.

This topic is part of Daily Current Affairs 27 August 2025 (14 topics).

All topics of the dayDay quizAugust 2025

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