To enable the transfer of cutting-edge technology and mobilize foreign funding in India, the Union government has finalized a list of activities to be considered for trading carbon credits under the Article 6.2 mechanism. In May 2022, India also notified the NDAIAPA, the National Designated Authority, to implement the Paris Agreement.
Within the three headings of GHG reduction actions, alternative materials, and removal activities, 13 activities have been finalized.
Renewable energy with storage (only stored component), solar thermal power, off-shore wind, green hydrogen, compressed biogas, emerging mobility solutions, high-end technology for energy efficiency, sustainable aviation fuel, use of best available technologies, tidal energy, and high voltage direct current transmission in conjunction with the renewable energy projects are all on the final list for GHG mitigation. Final approval was given for green ammonia as a substitute for abatement, carbon capture, and storage.
The Authority is tasked with making decisions regarding the kinds of projects that may participate in the global carbon market under Article 6 mechanisms, among other things. These initiatives will make it easier for new technology to be adopted and transferred, and they could be utilized to mobilize foreign investment in India. According to a statement released on Friday by the ministry of environment, forests, and climate change, the activities will initially last for the first three years. They may be amended or revised by NADAIPA.
This is taking place as the Paris Agreement Rulebook’s Article 6—which focuses on carbon trading through bilateral and cooperative methods and global market mechanisms—concludes with India following the host party’s or country’s mandate.