The Draft of Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025

In a significant climate action step, India has proposed draft rules to regulate and reduce greenhouse gas (GHG) emissions intensity across key energy-intensive industries. The GEI Target Rules, 2025, establish a clear compliance mechanism aligned with the Carbon Credit Trading Scheme, 2023, offering industries both obligations and market incentives to decarbonize. These targets are vital for India’s ambition to reduce GHG emissions intensity of its GDP by 45% by 2030 from 2005 levels.

Why in the News?

The Ministry of Environment, Forest and Climate Change has notified the Draft Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025 to operationalize India’s Carbon Credit Trading Scheme (CCTS), 2023 and help meet its climate goals under the Paris Agreement.

What is Greenhouse Gases Emissions Intensity (GEI)?

• GEI refers to GHG emissions per unit of output (e.g., per tonne of cement).
• It is measured in tCO₂e (tonnes of CO₂ equivalent), accounting for all major GHGs.
• Includes emissions from CO₂, CH₄, N₂O, CFCs, HCFCs, etc.

Key Features of Draft GEI Target Rules, 2025:

• Notified on: April 16, 2025.
• Open for feedback: 60-day window from notification.
• Linked to CCTS (Carbon Credit Trading Scheme), 2023.
• Sets baseline emissions for FY 2023–24.
• Defines reduction targets for FY 2025–26 and 2026–27.

Industries Covered

• Targets set for 282 industrial units from.
• Cement (186 units)
• Aluminium (13 units)
• Pulp & Paper (53 units)
• Chlor-Alkali (30 units)
• Major companies covered: Vedanta, Hindalco, Ultratech, JSW Cement, Dalmia Cement, etc.

Compliance and Enforcement

• Industries must submit action plans to reduce GEI.
• Penalties for non-compliance under the oversight of Central Pollution Control Board (CPCB).

Objectives of the Rules

• Aid India’s Paris Agreement target: 45% reduction in emissions intensity of GDP by 2030.
• Promote low-carbon growth and clean technologies.
• Support decarbonization through carbon credit incentives.

Link with Carbon Credit Market

• Industries reducing GEI below targets earn carbon credits.
• These can be traded on the Indian Carbon Market platform.
• Buyers: Industries that fail to meet targets or want flexibility.
• Managed by Bureau of Energy Efficiency (BEE), Ministry of Power.