Notification on Greenhouse Gas Emission Intensity Target Rule, 2025
This notification from the Ministry of Environment, Forest and Climate Change, issued on April 16, 2025, introduces the Greenhouse Gas Emission Intensity Target Rule, 2025 under the framework of the Carbon Credit Trading Scheme (CCTS) 2023.
Summary: The notification outlines the rules and regulations for trading carbon credit certificates to reduce greenhouse gas emissions and establishes the infrastructure for the Indian carbon market.
Purpose: The Greenhouse Gas Emission Intensity Target Rule, 2025, and the broader CCTS 2023 were introduced to contribute to India’s Nationally Determined Contributions (NDC) by reducing greenhouse gas emissions. They also aim to promote the adoption of sustainable technologies in traditionally high-emission industries to address climate change.
The scheme is applicable to “Obligated entities” who are required to achieve specific GEI targets and register on the Indian Carbon Market (ICM) Portal. The notification also requests feedback, objections, and suggestions from the public within sixty days of its publication.
Here are the key highlights of the notification from the Ministry of Environment, Forest and Climate Change regarding the Greenhouse Gas Emission Intensity Target Rule, 2025 under the Carbon Credit Trading Scheme (CCTS) 2023:
- Introduction of a New Rule: The notification introduces the “Greenhouse Gas Emission Intensity Target Rule, 2025”.
- Framework: This rule operates within the broader framework of the Carbon Credit Trading Scheme (CCTS) 2023.
- Objective: The primary goals are to reduce greenhouse gas emissions to contribute to India’s Nationally Determined Contributions (NDC) and promote the adoption of sustainable and modern technologies in high-emission industries.
- Carbon Market Mechanism: It outlines the rules and regulations for the trading of carbon credit certificates in the Indian carbon market.
- Applicability and Targets: The rule applies to “Obligated entities” in specified sectors and sub-sectors, including Aluminium (Smelter and Refinery) and Cement. These entities are assigned Greenhouse Gas Emission Intensity (GEI) targets for coming financial years.
- Compliance: Obligated entities must achieve their assigned GEI targets. If they fail to do so, they are required to purchase carbon credit certificates from the Indian carbon market.
- Registration: Obligated entities must register on the Indian Carbon Market (ICM) Portal.
- Public Consultation: The notification invites feedback, objections, and suggestions from the public on the draft rules within a period of sixty days from the date of its publication.
Based on the notification which is related to the Carbon Credit Trading Scheme (CCTS) 2023 where its mandatory to list out the GEI Targets of the Obligated Entities, notification has covered the GI Targets for the following sectors, sub sectors :
Sectors and Sub-sectors Covered:
The notification lists the following sectors and sub-sectors:
- Aluminium:
- Smelter
- Refinery
- Cement
Meaning of the Targets:
The targets issued for the coming financial years are Greenhouse Gas Emission Intensity (GEI) targets that obligated entities must achieve for each compliance year under the scheme. These targets are calculated according to a detailed procedure published by the Bureau and are specified in a schedule annexed to the notification. For each obligated entity, the GEI targets are provided in relation to their baseline GEI. The core objective is to reduce GEI to contribute to India’s climate goals.
Based on the notification regarding the Greenhouse Gas Emission Intensity Target Rule, 2025 under the Carbon Credit Trading Scheme (CCTS) 2023, the obligations of the listed obligated entities include:
- Achieving Greenhouse Gas Emission Intensity (GEI) Targets: Obligated entities must meet the specific GEI targets assigned to them for each compliance year as outlined in the schedule annexed to the notification.
- Purchasing Carbon Credit Certificates: If an obligated entity fails to achieve its GEI target for a compliance year, it must purchase carbon credit certificates from the Indian carbon market to cover the shortfall.
- Registration on the ICM Portal: Obligated entities are required to register themselves on the Indian Carbon Market (ICM) Portal.
- Submission of Documents: They must submit all necessary documents as per the guidelines issued by the Bureau.
- Compliance with Regulations: Obligated entities must comply with all the rules and regulations stipulated under the Greenhouse Gas Emission Intensity Target Rule, 2025 and the Carbon Credit Trading Scheme, 2023.
- Facing Penalties: Failure to comply with the obligations may result in penalties as specified in the scheme.
Public Feedback :
So, using the legal powers given by sections 3, 6, and 25 of the Environment (Protection) Act of 1986, the Central Government is sharing a draft version of this rule. They are doing this to inform everyone who might be affected by it. Please note that the government will review and finalize this rule only after 60 days have passed from the day this draft is published in the official government record (the Gazette).
If you have any objections or suggestions about this draft rule, you can send them to the Joint Secretary at the Ministry of Environment, Forest and Climate Change at the address: Indira Paryavaran Bhawan, Jor Bagh Road, New Delhi – 110003.
You can also send your feedback by email to: ccts.hsm-moefcc@gov.in
Essentially, the government is putting out the proposed rule for everyone to see and is giving the public 60 days to provide their thoughts or concerns before it becomes final.
You can find the full notification here:
https://moef.gov.in/storage/tender/1745395105.pdf