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.
The rules, issued under the Energy Conservation Act, 2001, and the Environment (Protection) Act, 1986, propose emission intensity targets for designated industrial sectors, to be implemented by the Bureau of energy efficiency (BEE). Targets will be defined in terms of tonnes of COâ‚‚ equivalent emissions per tonne of equivalent production, applicable for the compliance period 2025-26 to 2026-27, based on 2023-24 baseline data. The entities that fail to meet these targets must procure carbon credit certificates through the Indian carbon market portal or face environmental compensation, calculated as twice the average market price of carbon credits for the compliance year. Certificates can be banked for use in future periods. The rules cover high-emission sectors such as aluminium and cement, with companies like Vedanta, Hindalco, NALCO, and Ultratech Cement assigned specific baseline and target values.