India has taken a bold step towards sustainability with the Greenhouse Gases Emission Intensity (GEI) Targets. These targets, outlined in the recent draft notification from the Ministry of Environment, Forest, and Climate Change (MoEFCC), aim to reduce greenhouse gas emissions across key industries. This blog explores the framework, its objectives, and its impact on various sectors, ensuring you grasp the essentials of this critical environmental policy.
The Greenhouse Gases Emission Intensity Target Rules, 2025 form a core component of India’s Carbon Credit Trading Scheme (CCTS), introduced in 2023. This scheme establishes a market framework for trading carbon credit certificates. It encourages industries to reduce, remove, or avoid greenhouse gas emissions. The targets, detailed in the Greenhouse Gases Emission Intensity Target Rules, set specific emission intensity goals for obligated entities. These rules, effective upon publication in the Official Gazette, drive India’s commitment to its Nationally Determined Contributions (NDCs).
The primary goal is clear: reduce GEI to meet global climate commitments. The rules promote sustainable technologies in high-emission industries, addressing climate change effectively. By setting measurable targets, the framework encourages innovation and accountability. Consequently, industries adopt cleaner practices, contributing to a greener future.
| Sector | Sub-sectors |
|---|---|
| Aluminium | Smelter, Refinery |
| Cement | Portland Pozzolana Cement, Ordinary Portland Cement, Composite, Clinkerization, White Cement, Grinding |
| Chlor-Alkali | N/A |
| Pulp and Paper | Integrated Plant, RCF Based Plant, Agro Based Plant, Specialty Paper Plant |
Obligated entities need to account for Carbon Dioxide (CO2) and Perflurocarbons (PFCs) such as CF4, C2F6, C4F10, and C6F14, resulting from:
Each obligated entity receives specific GEI targets based on the emissions reduction trajectory and relative emissions intensity of the corresponding sub-sector or sector.
Obligated entities must meet their Greenhouse Gases Emission Intensity Targets annually. If they fall short of the targets, they can purchase carbon credit certificates through the Indian Carbon Market (ICM) Portal. Entities must register on the portal and submit required documents on time. Non-compliance triggers penalties, including environmental compensation set at twice the average trading price of carbon credits. This compensation funds further sustainability initiatives, reinforcing the scheme’s impact.
The Bureau of Energy Efficiency issues carbon credit certificates based on emission reductions. Entities exceeding their GEI targets earn certificates, calculated using a precise formula. Conversely, those missing targets must purchase certificates to cover shortfalls. Certificates can be banked for future use, offering flexibility. This market-driven approach incentivizes emission reductions while fostering economic opportunities.
Non-compliance carries consequences. The Central Pollution Control Board imposes environmental compensation for unmet targets. Entities must pay within 90 days, with funds allocated to the Carbon Credit Trading Scheme. Violations also fall under the Environment Protection Act, 1986, ensuring strict enforcement. This robust framework drives accountability across industries.
The GEI signal India’s leadership in combating climate change. By aligning with NDCs, these targets support global efforts to battle climate change. Moreover, they encourage industries to innovate, adopting cutting-edge technologies. This transition not only reduces emissions but also boosts competitiveness in a sustainability-focused world. For businesses, compliance opens doors to carbon markets, creating economic incentives.
The draft notification invites public feedback for 60 days, allowing stakeholders to share suggestions and comments to the Ministry of Environment, Forest, and Climate Change. This inclusive approach ensures the rules reflect diverse perspectives and builds stakeholder trust. Once finalized, the targets will take effect, marking a significant step toward a sustainable India.
India’s Greenhouse Gas Emission Targets for 2025 set a clear path for reducing emissions and promoting sustainability. By targeting key sectors like aluminium, cement, chlor-alkali, and pulp and paper, the framework drives meaningful change. Obligated entities must act swiftly, leveraging carbon credits and innovative technologies. As India advances toward its climate goals, these targets pave the way for a greener, more resilient future.
