Draft Greenhouse Gases Emission Intensity (GEI) Target Rules, 2025

The Union Environment Ministry has recently introduced the draft Greenhouse Gases Emission Intensity (GEI) Target Rules, 2025, aimed at regulating emissions in four energy-intensive sectors.

Key Features of the Rules:

1. GEI Definition: GEI refers to the Greenhouse Gases Emission Intensity, measured in tCO2e (tons of CO2 equivalent) per unit of output or product.
2. GEI Targets Calculation: The targets will be calculated based on the Bureau of Energy Efficiency’s methodology, specific to each obligated entity listed in the Schedule.
3. Compliance Requirements for Obligated Entities:
   1. Obligated entities must meet GEI targets annually.
   2. Compliance will be part of the Carbon Credit Trading Scheme (CCTS), 2023.
   3. Entities can purchase carbon credit certificates from the Indian Carbon Market (ICM) to offset any shortfall.
4. Environmental Compensation:
   1. If targets are not met, the Central Pollution Control Board (CPCB) will impose an environmental compensation fee.
   2. This fee will be twice the average price of carbon credit certificates traded in the compliance year and must be paid within 90 days.
5. Legal Backing: Non-compliance or violations of the rules will be handled under the Environmental Protection Act, 1986.

Significance of the Rules:

1. Nationally Determined Contributions (NDCs): These rules support India’s NDCs, which aim to reduce emissions intensity of GDP by 45% by 2030 compared to 2005 levels.
2. Alignment with Paris Agreement:
   • The rules align with Article 6 of the Paris Agreement, which provides mechanisms for countries to cooperate in meeting their NDCs, particularly through the carbon market.
3. Adoption of Sustainable Technology: The rules encourage the adoption of cutting-edge and sustainable technology across traditionally high-emission industries.

About the Carbon Credit Trading Scheme (CCTS), 2023:

1. Genesis: The CCTS was notified in 2023 under the Energy Conservation Act, 2001, to establish a structured carbon market in India.
2. Objective: The scheme’s goal is to reduce, avoid, or remove greenhouse gas emissions by facilitating the trading of Carbon Credit Certificates (CCCs).

Mechanisms under the CCTS:

1. Compliance Mechanism: Obligated entities can earn CCCs by adhering to the prescribed GEI emission intensity reduction norms.
2. Offset Mechanism: Non-obligated entities can register emission-reducing or removal projects to earn CCCs.

 

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