India Enforces First Legally Binding GEI Target Rules 2025

The first legally binding GEI target rules, 2025, target four high-emission sectors, namely aluminium, cement, pulp and paper, and chlor-alkali. These rules will help operate the country’s domestic carbon market under the Carbon Credit Trading Scheme (CCTS), 2023.

• GEI is the amount of greenhouse gases emitted per unit of product produced. For example, gases emitted in the production of one ton of products like cement or aluminium.
• These rules set targets for greenhouse gas (GHG) emissions per unit of product produced—for example, gases emitted in producing one ton of cement or aluminium. In return for meeting the emission targets, industries will receive carbon credits, while those failing to do so will have to buy credits or pay environmental compensation.
• These rules will help operate the country’s domestic carbon market under the Carbon Credit Trading Scheme (CCTS), 2023.
• This scheme was launched to create a framework for carbon credit trading, reduce carbon dioxide (CO2) emissions, and support India’s climate commitments under the 2015 Paris Climate Agreement.
• Under its domestic commitments to the global agreement, India has pledged to reduce the emission intensity of its gross domestic product (the amount of energy used per unit of GDP) by up to 45 percent by 2030 compared to 2005 levels.

Greenhouse Gas Emission Intensity

• Under the GEI rules, 282 high-emission industrial units will have to comply with mandatory targets for two years, 2025–26 and 2026–27.
• These 282 units include 186 cement units, 13 aluminium units, 30 chlor-alkali units, and 53 pulp and paper units. Greenhouse Gas (GHG) Emission Intensity or GEI is the amount of GHG emitted per unit of product produced.
• The rules define GEI targets in terms of per equivalent production or product tCO2e. tCO2e, or tonne of carbon dioxide equivalent, is a standard unit used to measure the impact of not only CO2 but all GHGs based on their potential to warm the planet.
• Major companies that have been assigned targets under the rules include Vedanta, Hindalco, Bharat Aluminium, JSW Cement, UltraTech, NALCO, JK Cement, Dalmia Cement, Shree Cement, Grasim Industries, and JK Paper.