Union Environment Ministry notifies draft Greenhouse Gases Emission Intensity (GEI) Target Rules, 2025

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Rules set GEI Targets for four energy-intensive sectors (aluminium, cement, chlor-alkali, and pulp & paper) ensuring emission cuts.

GEI means Greenhouse Gases Emission Intensity in tCO2e/equivalent output or product.

Key Highlights of the Rules

GEI Targets Calculation: As per Bureau of Energy Efficiency's methodology, specific to each obligated entity as listed in the Schedule.
Compliance Requirements for Obligated Entities: They must meet GEI targets annually as per the Carbon Credit Trading Scheme, 2023 (see box).
- May also purchase carbon credit certificates from the Indian Carbon Market (ICM) to offset shortfalls.
Environmental Compensation: To be imposed by the Central Pollution Control Board (CPCB), equal to twice of the average price at which carbon credit certificate is traded in the compliance year, payable within 90 days.
Legal Backing: Non-compliance or rule violations is addressed under the Environmental Protection Act, 1986.

Genesis: Notified in 2023 under the Energy Conservation Act, 2001, to create a structured carbon market in India.
Objective: Reduce, avoid, or remove greenhouse gas emissions by enabling the trading of Carbon Credit Certificates (CCSs).
Mechanisms under CCTS
- Compliance Mechanism: For obligated entities who earn CCSs on complying with the prescribed GHG emission intensity reduction norms.
- Offset Mechanism: For Non-obligated entities who can register their projects that reduce, or remove emissions to earn CCCs.