CURRENT AFFAIRS
CURRENT AFFAIRS
Description
On April 16, 2025, the Ministry of Environment, Forest and Climate Change introduced the Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025. These rules provide a structured compliance framework for the Carbon Credit Trading Scheme (CCTS), reinforcing India’s climate pledges under the Paris Agreement.
Understanding GHGs And Emissions Intensity
Greenhouse gases (GHGs), such as carbon dioxide, methane, and nitrous oxide, are responsible for trapping heat in the Earth’s atmosphere, driving global climate change. Emissions intensity refers to the volume of GHGs emitted per unit of industrial output such as per tonne of cement or aluminium highlighting the environmental efficiency of production.
Key Highlights Of GEI Rules
The notified draft rules define baseline emission intensities for the fiscal year 2023–24 and introduce phased reduction targets for 2025–26 and 2026–27. Sectors like aluminium, cement, pulp and paper, and chlor-alkali are specifically targeted. A total of 282 industrial units, including large corporations such as Vedanta and Ultratech, will be impacted by these new regulations.
Compliance And Enforcement
A robust compliance system underpins the GEI Rules. Industries that meet their emissions reduction targets can generate carbon credits. Those failing to comply will face penalties, enforced by the Central Pollution Control Board (CPCB). This framework aims to push companies towards adopting more sustainable production technologies.
Setting Targets Matters
Clearly defined emissions reduction goals are central to India’s strategy for achieving low-carbon industrial growth. For instance, a cement manufacturer can reduce its GEI by switching from coal to biomass and implementing energy-efficient machinery and practices.
Integration With Carbon Credit Trading Scheme
The GEI Rules directly support the functioning of the Carbon Credit Trading Scheme (CCTS). Industries that surpass their emissions reduction targets can sell surplus carbon credits on the Indian Carbon Market. Those falling short can buy credits to fulfil their obligations, creating an economic incentive for green innovation and investment.
India’s Role In Global Carbon Markets
India’s new emission intensity targets align with global carbon market strategies, such as the European Union Emissions Trading System (EU ETS) and China’s national carbon trading program. By introducing these rules, India positions itself as an active leader in international climate initiatives and sustainable industrial development.
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