Team siliconindia

• India notifies legally binding emission reduction targets for 282 major industrial units
• Targets cover aluminium, cement, pulp and paper, and chlor alkali sectors
• Companies must reduce greenhouse gas emissions per unit of production starting 2025

India has introduced its first ever legally binding emission intensity targets for key industrial sectors. The government issued the Greenhouse Gases Emission Intensity Target Rules, 2025, requiring 282 industrial plants to cut greenhouse gas emissions per unit of output, based on 2023-24 levels.

The rules cover carbon intensive industries like aluminium, cement, pulp and paper, and chlor-alkali. Compliance begins in the financial year 2025-26 and continues through 2026-27. Industries must lower their emission intensity measured in tonnes of carbon dioxide equivalent per tonne of product by specified percentages. For instance, cement plants need to reduce emissions by 3.4%, while aluminium smelters face a 5.8% reduction target.

Facilities that emit less than their set limits can earn tradable carbon credit certificates, while those exceeding the targets must buy credits or pay penalties. Penalties will be twice the average carbon credit trading price, overseen by the Central Pollution Control Board.

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This move is part of India’s broader climate strategy, supporting the Energy Conservation (Amendment) Act, 2022, and building on the Perform, Achieve and Trade (PAT) energy efficiency scheme. It also aligns with India’s Paris Agreement goals, aiming to reduce emission intensity of GDP by 45% by 2030 and achieve net-zero emissions by 2070.

The rules will help Indian industries prepare for global carbon regulations like the EU’s Carbon Border Adjustment Mechanism, which taxes carbon-heavy imports.