Draft Rules for Greenhouse Gas (GHG) Emissions Reduction
The Government of India has introduced draft rules aimed at reducing GHG emissions in energy-intensive industries. These rules are part of the Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025, published by the Ministry of Environment, Forest, and Climate Change on April 16. This initiative establishes a compliance mechanism for the Carbon Credit Trading Scheme, 2023, which is designed to help reduce emissions and fulfill India's commitments under the Paris Climate Agreement of 2015.
Understanding Greenhouse Gases Emissions Intensity (GEI)
- GHGs: These are gases that trap heat in the atmosphere, contributing to global warming. The main GHGs include water vapor, carbon dioxide, methane, nitrous oxide, and ozone.
- GEI Definition: It is the amount of GHGs emitted per unit of product output, expressed in tCO2e (tonnes of carbon dioxide equivalent). This metric helps quantify the environmental impact of production processes.
Draft GEI Target Rules
- Baseline and Targets: Baseline emissions for 2023-24 have been set, with reduction targets for 2025-26 and 2026-27, focusing on industries like aluminium, chlor-alkali, pulp and paper, and cement.
- Coverage: The targets apply to 282 industrial units, including major corporations like Vedanta, Hindalco, and JSW Cement.
- Compliance Mechanism: Specifies how industries can meet targets and penalties for non-compliance.
Importance of GEI Targets
The introduction of these targets is crucial for pushing industries towards low-carbon growth, aligning with India's climate goals. This effort includes adopting sustainable technologies and practices to reduce emissions intensity. For instance, cement plants could use biomass instead of coal and employ energy-efficient kilns.
India's Climate Goals
A key objective of these rules is to help India reduce its emissions intensity by 45% by 2030, compared to 2005 levels. This aligns with India's commitment under the Paris Agreement to promote sustainable technologies in high-emission industries.
Carbon Credit Trading Scheme (CCTS)
- Establishes a framework for generating, trading, and using carbon credit certificates.
- Allows industries to earn carbon credits for reducing emissions intensity, tradable in the carbon market.
- Non-compliance results in the need to purchase credits or face penalties from the Central Pollution Control Board.
Global Context
The carbon credit market concept is not new, with similar systems operational in Europe and China since 2005 and 2021, respectively. The market incentivizes industries to decarbonize, allowing those adopting clean technologies to profit, while others can transition gradually by purchasing credits.
