Greenhouse Gas Emission Targets Rolled Out for four Indian Sectors. ESG Broadcast Shares Key Takeaways.
India’s Ministry of Environment, Forest and Climate Change (MoEFCC) notified the Greenhouse Gas Emission Intensity Targets Rules, 2025, through an official gazette on October 8, 2025. This notification established mandatory greenhouse gas emission intensity targets for obligated entities in the aluminum, cement, Chlor-Alkali and Paper sectors. The rules aimed to enforce compliance with the Carbon Credit Trading Scheme introduced in 2023. Obligated entities included major companies like Vedanta Limited and UltraTech Cement. The greenhouse gas emission intensity targets were calculated based on baseline data from 2023-24. The notification specified targets for compliance years 2025-26 and 2026-27. It incorporated recommendations from the Bureau of Energy Efficiency and the National Steering Committee.
The draft of these rules was published earlier on April 16, 2025, inviting public comments. All suggestions were considered before the publication of the final notification The greenhouse gas emission intensity targets focused on reducing tCO2e per unit of equivalent output. Entities failing to meet these greenhouse gas emission intensity targets will face environmental compensation. This compensation will equal twice the average trading price of carbon credits. The rules promoted banking of surplus carbon credit certificates. Detailed procedures under the Carbon Credit Trading Scheme guided the implementation. Registration on the Indian Carbon Market portal is required for all obligated entities and the notification invoke powers under the Environment Protection Act, 1986. The notification under CCTS aligns with India’s broader climate commitments. Overall, the greenhouse gas emission intensity targets mark a step toward sustainable industrial practices.
The greenhouse gas emission intensity targets for the aluminum sector are divided into smelter and refinery sub-sectors. The rules emphasized accurate reporting of greenhouse gas emissions. Non-compliance would lead to surrender of carbon credits equivalent to shortfalls. These greenhouse gas emission intensity target promote energy efficiency and integrate with national energy conservation goals. The notification detailed formulas for calculating carbon credit issuance. The greenhouse gas emission intensity targets fosters accountability and are aligned with industries and with India’s net-zero ambitions.
Strategic significance lies in advancing India’s climate action agenda through enforceable greenhouse gas emission intensity targets. This move strengthened the Carbon Credit Trading Scheme’s (CCTSs) effectiveness and encouraged innovation in low-emission technologies across sectors. The greenhouse gas emission intensity targets positioned India as a leader in global sustainability efforts. They support economic growth while curbing environmental impact. Ultimately, these rules contributed to long-term greenhouse gas emission reductions.
