Draft GEI Target Rules, 2025 Issued for Comments

The Ministry of Environment, Forest and Climate Change, on June 23, 2025, released for public comments the draft greenhouse gas emission intensity (GEI) targets for obligated entities under the Carbon Credit Trading Scheme, 2023, as notified via S.O. 2825(E) dated June 28, 2023. The draft aims to support the achievement of India’s Nationally Determined Contributions by reducing GEI and promoting the adoption of sustainable, advanced technologies in high-emission industries.

The notification specifies GEI targets for over 460 obligated entities across aluminum, iron and steel, petroleum refineries, petrochemical units and the textile sector for the next two compliance years in relation to their baseline GEI. Obligated entities are required to achieve the GEI targets or meet them by purchasing carbon credit certificates from the Indian carbon market. They are also required to submit the banked or purchased carbon credits and register on the Indian Carbon Market (ICM) Portal within the timeline.

The notification also provides a formula for the calculation of the number of carbon credit certificates to be issued to or purchased by the obligated entity in a compliance year, i.e., the difference in the GEI target and the GEI achieved x unit of equivalent product produced in that compliance year. Failure to comply shall lead to the imposition of environmental compensation by the Central Pollution Control Board (CPCB), which will be equal to twice the average price at which carbon credit certificates are traded during the trading cycle of that compliance year. The compensation must be paid within 90 days.

Objections or suggestions may be e-mailed to ccts.hsm-moefcc@gov.in or sent to the address specified in the notification within 60 days.