India consults industries on emission intensity targets

Market: Emissions
23/04/25

The Indian government has launched a consultation on greenhouse gas emission intensity (GEI) targets for obligated entities under its forthcoming Carbon Credit Trading Scheme (CCTS).

The GEI targets, also labelled as "Greenhouse Gases Emission Intensity Target Rules, 2025" by the Indian government, are set to contribute to the country's nationally determined contribution (NDC) through emissions reduction, removal or avoidance, according to the official draft notification from the ministry of environment.

The government has given liable companies until mid-June, or 60 days since publication on the official gazette on 16 April, to comment on the drafted GEI targets. These cover emissions from a total of 282 companies from four different sectors. The cement sector comprises more than 65pc of the list, with 186 companies, followed by the pulp and paper, chlor-alkali and aluminium sectors with respective 53, 30 and 13 companies each.

The GEI targets comprise two compliance periods, 2025-26 and 2026-27, and can be achieved by either reducing emissions or by "purchasing carbon credits certificates from the Indian carbon market" according to the draft. Companies keeping emissions below the targets will be issued carbon credits. These can be either banked until the next compliance cycle, or sold to underperforming firms.

Obligated entities that underperform and fail to submit carbon credits equivalent to the shortfall for compliance will be charged twice the average traded carbon price for the related compliance cycle. The price will be calculated by the bureau of energy efficiency, which sits within India's power ministry.

The GEI targets are the latest instrument introduced by the Indian government to shape up its domestic carbon market. It first introduced the idea of a carbon market with the Energy Conservation bill in 2022. This was then followed by the Carbon Credits Trading Scheme in 2023 and the Detailed Procedure for Compliance Mechanism under CCTS in July 2024.

By Nicola De Sanctis

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White House ends use of carbon cost

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Carbon credit method may limit Australia's ACCU supply

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Carbon credit method may limit Australia's ACCU supply

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09/05/25

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09/05/25

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08/05/25

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