Author: PPD Team Date: 24/04/2025
The Ministry of Environment, Forest and Climate Change (MoEFCC) has issued a draft notification introducing the Greenhouse Gas Emission Intensity Target Rules, 2025, under the carbon credit trading scheme, 2023. These rules aim to reduce emissions in designated industrial sectors by setting specific emission intensity targets.
Issued under the Energy Conservation Act, 2001, and the Environment (Protection) Act, 1986, the rules propose targets in terms of tonnes of CO₂ equivalent emissions per tonne of equivalent production. These targets will be applicable for the compliance period of 2025-26 to 2026-27, based on baseline data from the year 2023-24. The Bureau of Energy Efficiency (BEE) will oversee the implementation of these targets.
Entities that fail to meet their targets will be required to procure carbon credit certificates through the Indian carbon market portal or face an environmental compensation penalty, which will be twice the average market price of carbon credits for the compliance year. Additionally, carbon credit certificates can be banked for future use.
The rules focus on high-emission sectors like aluminium and cement, with companies such as Vedanta, Hindalco, NALCO, and Ultratech Cement assigned specific baseline and target values.