Draft GEI Rules Introduce Emission Targets for Industries

Draft GEI Rules Introduce Emission Targets for Industries

Why in the News ?

The Environment Ministry has notified the Draft Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025, aimed at reducing emissions in energy-intensive industries. These targets support India’s Carbon Credit Trading Scheme and help fulfil its Paris Agreement commitments.

Draft GEI Rules Introduce Emission Targets for Industries

Key Provisions of the Draft GEI Rules:

  • Draft GEI Rules, 2025 notified on April 16, set emission intensity targets for energy-intensive industries.
  • Targets apply to 282 industrial units from sectors like aluminium, cement, pulp & paper, and chlor-alkali.
  • Major firms like Vedanta, Hindalco, JSW Cement, and Grasim are covered.
  • GEI is measured in CO₂ equivalent per unit of output.
  • Targets are set for 2025–26 and 2026–27, with penalties for non-compliance.

Importance for India’s Climate Commitments

  • Helps achieve India’s goal of reducing emissions intensity of GDP by 45% by 2030 (compared to 2005) under the Paris Agreement.
  • Encourages adoption of green technologies and low-carbon processes in high-emission sectors.
  • Builds on the older PAT Scheme (since 2012), but expands scope from energy to overall GHG emissions.
  • Promotes sustainability through cleaner fuels, efficient machinery, and emission-reducing innovations.

Boost to India’s Carbon Credit Market

  • The Rules operationalise the Carbon Credit Trading Scheme (CCTS), 2023.
  • Industries meeting GEI targets earn tradable carbon credits.
  • Non-compliant firms must buy credits or face Central Pollution Control Board penalties.
  • Creates a market-based incentive for industries to cut emissions.
  • Supports a regulated carbon market akin to systems in Europe and China.

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

●      What it is: Mandates GHG emissions intensity reduction for energy-intensive industries.

●      Released by: Ministry of Environment, Forest and Climate Change, Government of India.

●      Objectives:

○       Cut emissions intensity in key sectors.

○       Support implementation of Carbon Credit Trading Scheme (CCTS), 2023.

○       Help achieve India’s Paris Agreement target (45% reduction by 2030 vs 2005).

●      Features:

○       Baseline Year: 2023–24.

○       Targets: For 2025–26 and 2026–27.

○       Industries Covered: Aluminium, cement, pulp & paper, chlor-alkali.

○       Units Covered: 282 units across 4 sectors.

○       Mechanism: Carbon credit trading and penalties via CPCB.