India notifies first emission intensity targets for carbon-intensive sectors

The government has notified the Greenhouse Gases Emission Intensity Target Rules 2025 setting Indias first legally binding emission reduction targets for carbonheavy industriesThe notification issued by the environment ministry on October 8 after considering all suggestions and objections received on the draft rules published on April 16 requires 282 industrial units across the aluminium cement pulp and paper and chloralkali sectors to reduce their greenhouse gas emissions per unit of output emission intensity from the 202324 baseline levelsAccording to the notification each facility must reduce the amount of greenhouse gases emitted per unit of output measured in tonnes of carbon dioxide equivalent per tonne of product compared to a 202324 baseline The compliance period begins in 202526 and continues through 202627The move operationalises the Energy Conservation Amendment Act 2022 which empowered the government to establish a domestic carbon marketIt also builds on Indias Perform Achieve and Trade PAT energy efficiency scheme which had earlier set energysaving targets for industries but not direct carbon limitsAccording to the rules facilities that emit less than their assigned target can earn tradable carbon credit certificates while those exceeding the target must purchase equivalent credits from the Indian carbon market or pay a penaltyThe penalty termed environmental compensation will be twice the average trading price of carbon credits during that compliance yearThe average price will be determined by the Bureau of Energy Efficiency BEE The Central Pollution Control Board CPCB will impose and oversee recovery of penalties which must be paid within 90 daysThe notified schedule details companywise and plantwise targetsFor example aluminium smelters operated by Vedanta Hindalco Nalco and Balco and large cement plants owned by UltraTech Dalmia JK Cement Shree Cement and ACC feature in the first compliance cycleEmission intensity reduction targets range from about 34 per cent over two years in the cement sector to about 58 per cent in aluminium 75 per cent in chloralkali and 71 per cent in pulp and paper based on the baseline yearIndias carbon credit trading framework is seen as critical to meeting its nationally determined contribution NDC targets under the Paris Agreement including reducing the emission intensity of GDP by 45 per cent by 2030 from 2005 levels and achieving net zero by 2070The rules also prepare Indian exporters to adapt to international mechanisms such as the European Unions Carbon Border Adjustment Mechanism CBAM which taxes carbonintensive imports like cement steel and aluminiumThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever