NDA or DNA (Designated National Authority) is a mandatory requirement to enable a carbon emissions trading regime under Article 6.4 of the Paris Agreement (2015).

Article 6 of Paris Agreement

• It sets out how countries can pursue voluntary cooperation to reach their climate targets and pertains to the establishment of International Compliance Carbon Markets where countries can trade carbon credits.
• Article 6.4, also known as the Paris Agreement Crediting Mechanism (PACM), allows countries to transfer carbon credits earned from the reduction of greenhouse gas emissions to help one or more countries meet their climate targets.

About NDA or DNA

• Definition: DNA is the organization granted responsibility by a Party to authorize and approve participation in Article 6.4 projects. 
  • India prepared a list of identified activities/projects under Article 6.4 which includes GHG mitigation activities (renewable energy, green hydrogen etc.), Alternate materials (Green Ammonia) and Removal Activities (Carbon Capture, Utilization and Storage). 
• Composition: 21-member committee, headed by Secretary, Environment Ministry. 
• Functions of NDA: Recommend list of eligible activities/projects for emission reduction trading and authorize projects under Article 6.4.