The Ministry of Environment, Forest and Climate Change (MoEFCC) has issued a draft notification for the Greenhouse Gas Emission Intensity (GEI) Rules, 2025, under the compliance mechanism of the carbon credit trading scheme, 2023.
The rules issued under the Environment (Protection) Act, 1986, propose the introduction of GEI targets for obligated entities to be notified by the ministry. GEI targets will be calculated as per the methodology defined in the detailed procedure published by the Bureau of Energy Efficiency. The obligated entities must meet annual targets through internal abatement or by purchasing carbon credit certificates from the Indian Carbon Market (ICM) portal. Entities failing to meet targets must either submit additional certificates or face environmental compensation, determined as twice the average market price of carbon credits in the respective compliance year. Banking of surplus carbon credit certificates is permitted, and all compliance documentation must be submitted via the ICM portal.