India expands key climate action body as it prepares to launch its first carbon market in 2026. The government has doubled the size of the National Designated Authority (NDA) from 10 to 20 members to give broader sectoral representation. The updated NDA was notified on August 23, 2025, with the Secretary of the Ministry of Environment, Forests, and Climate Change (MoEFCC) as the chairperson.

NDA Expanded to 20 Members: New Ministries Added

The NDA, established in May 2022, now includes members from crucial ministries such as steel, ports, shipping and waterways, civil aviation, petroleum, and natural gas for the first time. These join existing members from external affairs, power, new and renewable energy, economic affairs, agriculture, commerce and industry, and Niti Aayog.

India’s multiple decarbonisation efforts drove the decision to expand. For example, steel and refineries already have emission reduction targets.

Green hydrogen will soon be used in shipping and ports, while the aviation sector is exploring sustainable aviation fuel. All of these sectors are expected to play a big role in the upcoming carbon market.

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NDA’s Role in Climate Finance and Global Positioning (Key Fact)

India expands key climate action body not just for domestic climate targets but also for international positioning. The NDA will identify, evaluate, and authorize projects that generate carbon credits. It will also help India gain access to global climate finance and participate in international carbon markets.

This step comes at a crucial time, as India has proposed hosting the United Nations climate summit (COP 33) in 2028, a move already supported by the BRICS nations. A stronger NDA with wider representation is a way to prepare India for this leadership role.

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Carbon Market Launch in 2026

The Union government plans to launch the Indian Carbon Market in 2026, creating a trading system for carbon certificates. Businesses and governments will be able to buy and sell carbon credits, turning emission reduction into a financial incentive. This will encourage industries to cut greenhouse gas emissions while earning value for their efforts.

Carbon markets are considered crucial to achieving global climate goals under the Paris Agreement, to which India is a signatory.

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India’s Climate Goals: Net Zero Emissions by 2070

India has set ambitious Nationally Determined Contributions (NDCs):

• Cut emissions intensity of GDP by 45% by 2030 (from 2005 levels).
• Achieve 50% of power capacity from non-fossil fuel energy by 2030.
• Reach net zero emissions by 2070.

Remarkably, India announced in July 2025 that it had already achieved 50% of its installed power capacity from non-fossil fuel sources, five years ahead of schedule.

With these achievements, India expands its key climate action body to ensure faster progress and better coordination across ministries, as it prepares for the era of the carbon market.

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Summary Table — Key Facts

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