Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025

April 30, 2025

The Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025 was notified by the Ministry of Environment, Forest and Climate Change on April 16, 2025. The Rules establish a compliance mechanism for the Carbon Credit Trading Scheme (CCTS), which supports India’s commitments under the Paris Climate Agreement.

About Greenhouse Gases and Emissions Intensity

Greenhouse gases (GHGs) trap heat in the atmosphere, contributing to global warming. Major GHGs include carbon dioxide, methane, and nitrous oxide. The term “greenhouse gases emissions intensity” (GEI) refers to the amount of GHGs emitted per unit of product output. For example, it measures emissions in the production of one tonne of cement or aluminium.

Key Features of the Draft Rules

The draft Rules set baseline emissions for the years 2023-24 and outline gradual reduction targets for 2025-26 and 2026-27. Specific targets have been established for industries such as aluminium, cement, pulp and paper, and chlor-alkali. A total of 282 industrial units are affected, including major companies like Vedanta and Ultratech.

Compliance Mechanism and Penalties

The Rules define a clear compliance mechanism. Industries must meet their GEI targets to earn carbon credits. Failure to comply will result in penalties enforced by the Central Pollution Control Board. This incentivises industries to adopt cleaner technologies and processes.

Importance of Emission Reduction Targets

Setting specific emission reduction targets is vital for achieving India’s climate goals. These targets aim to shift industries towards low-carbon growth. For instance, a cement plant can lower its GEI by using biomass instead of coal and implementing energy-efficient practices.

Connection to Carbon Credit Trading Scheme

The CCTS allows for the trading of carbon credits. Industries that reduce emissions intensity can earn credits, which they can trade on the Indian Carbon Market. This system encourages industries to innovate and invest in clean technology. Those unable to meet targets may purchase credits to comply with regulations.

Global Context of Carbon Trading

India’s approach aligns with global trends in carbon trading. Similar markets exist in Europe and China, promoting emission reductions through economic incentives. The introduction of GEI targets positions India as a proactive participant in global climate action.

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