Greenhouse Gas Emission Intensity (GEI) Target Rules, 2025
The Centre has introduced the first legally binding GEI Target Rules for high-emission sectors like aluminium, cement, chlor-alkali, and pulp and paper. These rules set targets for greenhouse gas (GHG) emissions per unit of product output.
Key Features
- Industries Affected: 282 high-emission units, including 186 cement units, 13 aluminium units, 30 chlor-alkali units, and 53 pulp and paper units.
- GEI Definition: GHG emissions per unit of product, measured in tCO2e (tonnes of carbon dioxide equivalent).
- Target Goals: Industries are required to meet specific emissions reductions or earn carbon credits. Non-compliance will result in penalties or the requirement to buy credits.
Implementation
- Compliance Period: Mandatory targets for 2025-26 and 2026-27.
- Carbon Credit Trading: Part of the Carbon Credit Trading Scheme (CCTS) 2023, facilitating CO2 emissions reduction and supporting India’s climate commitments under the Paris Agreement.
- Bureau of Energy Efficiency: Responsible for issuing carbon credit certificates.
Key Corporations Involved
- Targeted corporations include Vedanta, Hindalco, Bharat Aluminium, JSW Cement, Ultratech, Nalco, JK Cement, and others.
The targets for 2025-26 require modest reductions of 2-3%, increasing to 7.5% by 2026-27. The cement sector faces reductions from 4.7% to 7.6%, while pulp and paper targets reach up to 15% over two years.
Previous Efforts
Prior to CCTS, the Perform, Achieve, Trade (PAT) scheme aimed to enhance energy efficiency since 2012, but lacked a domestic market for trading emission credits.
