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. 

Reduction varying by sector

• 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

Key Features of Greenhouse Gas Emission Intensity (GEI)

• The GEI is the amount of greenhouse gases emitted per unit of production, measured in tonnes of CO₂ equivalent (tCO₂e) 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.

Sector Coverage and Compliance

• 186 cement units
• 13 aluminium units
• 30 chlor-alkali units
• 53 pulp and paper units

Importance and Challenges

• 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.

This rule represents a significant step toward India's long-term net-zero emissions target by 2070, by making industries accountable through legally binding emission reduction mandates and linking economic incentives to environmental performance.

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