Why in News:
The government has notified its first legally binding emission reduction targets for four high-emission sectors—aluminium, cement, chlor-alkali, and pulp & paper—under the Greenhouse Gas Emission Intensity (GEI) Rules, 2025. Non-compliant industries must buy carbon credits, advancing India’s Paris Agreement commitments and domestic carbon trading.
Objective:
- To legally mandate carbon emission reduction targets for high-emission sectors.
- Facilitate India’s climate commitments under the Paris Agreement (2015).
- Integrate with India’s Carbon Credit Trading Scheme (CCTS) for a domestic carbon market.
Sectors Covered:
- Cement (186 units)
- Aluminium (13 units)
- Chlor-alkali (30 units)
- Pulp & Paper (53 units)
Total: 282 industrial units.
Key Provisions:
- Emission Intensity: Measured in tCO₂e (tonnes of CO₂ equivalent) per unit of product output.
- Compliance Period: 2 years (2025-26 and 2026-27).
- Industries achieving reductions earn carbon credits, tradeable under the domestic carbon market.
- Industries failing to meet targets must purchase carbon credits to offset shortfalls.
- Enforcement: Central Pollution Control Board can impose environmental compensation for non-compliance.
Reduction Targets:
- Modest reductions in first year: ~2–3%
- By second year: up to 7.5%
- Example: Cement sector – 4.7–7.6%; Pulp & Paper – up to 15%.
Significance:
- First legally binding emission reduction targets in India.
- Strengthens domestic carbon market under CCTS.
- Supports India’s goal to reduce emission intensity of GDP by 45% by 2030 (2005 baseline).
- Builds on the earlier PAT (Perform, Achieve, Trade) scheme (2012), now with a trading framework.
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