India has recently announced the activities that will be eligible for trading carbon credits under the Article 6.2 mechanism. The mechanism aims to transfer emerging technologies and mobilize international finance in the country. The National Designated Authority for the Implementation of the Paris Agreement (NDAIAPA) has been notified and authorized to make decisions on the type of projects that may participate in the international carbon market under Article 6.
India has finalized a list of activities that will be eligible for carbon trading under bilateral/cooperative approaches. These activities include GHG mitigation activities such as renewable energy with storage, solar thermal power, off-shore wind, green hydrogen, compressed bio-gas, emerging mobility solutions, 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. In addition, alternate materials such as green ammonia, and removal activities such as carbon capture utilization and storage, will also be considered.
The inclusion of these activities will help promote the adoption and transfer of emerging technologies, while also mobilizing international finance in India. These activities will be reviewed and updated by NADAIPA over the next three years.