Legally binding emission cut targets
Why in news?
- The legally binding emission cut targets for four industrial sectors notified by the Indian government for 2025-26 and 2026-27 are focused on aluminium, cement, chlor-alkali, and pulp and paper.
- These targets are part of the Greenhouse Gas Emission Intensity (GEI) Target Rules, 2025 and support India's commitment to reducing the emissions intensity of its GDP by 45% by 2030 compared to 2005 levels.
- Cement sector: around 3.4% reduction
- Aluminium sector: about 5.8% reduction
- Chlor-alkali sector: around 7.5% reduction
- Pulp and paper sector: about 7.1% reduction
- The GEI is the amount of greenhouse gases emitted per unit of production, measured in tonnes of COâ‚‚ equivalent (tCOâ‚‚e) per tonne of product.
- The rules offer a framework for carbon credit trading under the Carbon Credit Trading Scheme (CCTS), 2023.
- Industries failing to meet the targets must buy carbon credits or pay environmental compensation enforced by the Central Pollution Control Board.
- Targets require progressive emission intensity reductions: roughly 2-3% in 2025-26 and up to 7.5% by 2026-27.
- Cement sector targets range between 4.7% and 7.6%, while for pulp and paper, reductions can be as high as 15% over two years.
- The rules aim to support India's commitment to reduce emissions intensity of GDP by 45% by 2030 compared to 2005 levels, aligning with the Paris Climate Agreement.
- The Bureau of Energy Efficiency is the implementing agency issuing carbon credit certificates.
- This framework replaces the earlier Perform, Achieve, Trade (PAT) scheme by incorporating a market-based carbon trading system.
- 186 cement units
- 13 aluminium units
- 30 chlor-alkali units
- 53 pulp and paper units
- The GEI Rules are integral to operationalising India’s domestic carbon market and encouraging clean technologies.
- Challenges include accurate emissions monitoring, technical capacities of smaller industries, and ensuring robust carbon market participation.
- The government plans to expand these schemes to more sectors and strengthen monitoring and enforcement protocols.
