The Greenhouse Gasses Emissions Intensity (GEI) Target Rules, 2025, set a specific submission mechanism aligned with the Carbon Credit Trading Scheme, 2023, showing industries' responsibilities and market incentives to decarbonize. These targets are essential for India's dream to lower the intensity of GHG emissions in its GDP by 45% by 2030.

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Why In News?

The Draft Greenhouse Gases Emissions Intensity (GEI) Target Rules 2025 strive to lessen India's emissions power of Gross Domestic Product by 45% by 2030. These regulations apply to 282 industrial branches across four sectors. These four sectors are aluminium, pulp & paper, cement, and chlor-alkali. Baseline emissions are set for FY 2023–24, with targets for FY 2025–26 and 2026–27. Deferent industries can make tradable carbon credits, while violators may face fines from the Central Pollution Control Board.

About Greenhouse Gases and Emissions Intensity

The "Greenhouse Gases Emissions Intensity" or "GEI" Target Rules, 2025, was reported by the “Ministry of Environment, Forest and Climate Change” on April 16, 2025. The Rules specify an observation mechanism for the Carbon Credit Trading Scheme (CCTS), which sustains India's responsibilities under the Paris Climate Agreement. Greenhouse gases (GHGs) catch heat in the environment, causing global warming. Major GHGs comprise carbon-di-oxide, nitrous oxide, and methane. "Greenhouse Gas Emissions Intensity" or "GEI" refers to the quantity of GHGs emitted per unit of product outcome. For instance, it calculates emissions by producing one tonne of aluminium or cement.

In an effective climate movement action, India has submitted draft rules to control and lower the power of the intensity of greenhouse gas (GHG) emissions across key energy-intensive enterprises. The GEI Target Rules, 2025, set a specific submission mechanism aligned with the Carbon Credit Trading Scheme, 2023, showing endeavours both responsibilities and demand stimuli to decarbonize.

The draft Rules specified baseline emissions for 2023-24 and outlined gradual drop targets for 2025-26 and 2026-27. Precise targets have been designated for industries such as cement, aluminium, chlor-alkali, pulp, and paper. Two hundred eighty-two industrial units were affected, including significant companies like Ultratech and Vedanta.

 Features

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

Objectives

• Aid India's Paris Agreement target: 45% reduction in emissions power of GDP by 2030.
• Boost low-carbon evolution and clean technologies.
• Support decarbonization via carbon credit incentives
• Lower greenhouse gas emissions intensity in essential sectors.
• Operationalize the Carbon Credit Trading Scheme (CCTS), 2023.
• Encourage India to meet its Paris Agreement commitment of lowering emissions intensity of GDP by 45% by 2030, analogized to 2005 levels.
• Upgrade innovative, sustainable, and climate-resilient industrial approaches.

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Importance of Emission Reduction Targets

The government has announced draft Rules familiarising targets for lowering greenhouse gas (GHG) emissions by "obligated entities" in energy-intensive sectors and enterprises. The Draft Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025, reported by the Ministry of Environment, Forest and Climate Change on April 16, delivers a submission mechanism for the Carbon Credit Trading Scheme, 2023 (CCTS). The CCTS was founded to develop a framework for dealing with carbon credits, to promote emissions reduction in energy-intensive industries, and to sustain India's climate commitments under the Paris Climate Agreement 2015.

Environment Commitments

• Allows India to move towards its Paris Agreement target, lowering emissions intensity of GDP by 45% by 2030 (compared to 2005 levels).
• Inspires industries to follow a low-carbon development path through clean energy and strategy innovation.

Technology Adoption

• Enables using endurable, energy-efficient, and low-emission technologies in high-emission sectors.
• Instance: Cement plants can reduce GEI by using biomass instead of coal and upgrading to cleaner kilns.

Linkage with CCTS, 2023

• The CCTS delivers a framework for industries to generate, trade, and use carbon credits.
• With GEI targets, industries know distinctive objectives they must perform to earn carbon credits.
• Industries surpassing targets can deal with credits, while under-performers must purchase credits or face penalties.

Key Provisions of the Draft GEI Rules

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Global Context of Carbon Trading

India's strategy aligns with global trends in carbon trading. Comparable markets in Europe and China encourage emission reduction through economic motivations. The preface of GEI targets India as a bold participant in global climate activity. Carbon dioxide is produced primarily by burning fossil fuels such as petroleum and coal or by deforestation. The major greenhouse gas is heating the climate, showing rising seas and greater weather extremes. Placing a fee on every tonne of carbon dioxide (CO2) yielded by industry and transportation or protected from being emitted by being more efficient or sealing away carbon by growing trees delivers a cash incentive to impede carbon pollution.

Connection to Carbon Credit Trading Scheme

The CCTS set a framework for developing, trading, and using carbon credit credentials. Under the Kyoto Protocol (Article 17), the international treaty that committed industrialised nations and economising in transition to define and lower GHG emissions by approved particular targets, countries that have emission units to spare — allowed but "unused" — were permitted to trade this extra ability to nations that were over their targets. Carbon dioxide is the primary greenhouse gas, and this trade is believed to be trading in carbon in the "carbon market". With the preface of the GEI targets, enterprises will know what to acquire to gain carbon credits. They will also have to design action plans to execute those objectives.

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Download Draft GEI Target Rules 2025 Key Takeaways PDF

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