GASES EMISSIONS INTENSITY: ENVIRONMENT

GASES EMISSIONS INTENSITY: ENVIRONMENT

NEWS: How draft Greenhouse Gases Emissions Intensity Targets aim to help India meet climate goals

WHAT’S IN THE NEWS?

The Draft GEI Target Rules, 2025 aim to reduce greenhouse gas emissions intensity across key industrial sectors like aluminium and cement, using 2023–24 as the baseline. It integrates mandatory targets with market mechanisms such as carbon trading, aligning with India’s goal to cut emissions intensity of GDP by 45% by 2030.

Context: Draft Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025

  • The Ministry of Environment, Forest and Climate Change (MoEFCC) has notified draft GEI Target Rules to regulate emissions intensity in key industrial sectors.
  • These rules reflect India’s transition towards a low-carbon industrial economy while maintaining productivity and global competitiveness.

What is Greenhouse Gases Emissions Intensity (GEI)?

  • GEI refers to the volume of greenhouse gas emissions per unit of output produced (e.g., tonnes of cement, aluminium, etc.).
  • It is measured in tonnes of CO₂ equivalent (tCO₂e), a standard unit that reflects the global warming potential of various greenhouse gases.
  • The key GHGs include:
  • Carbon dioxide (CO₂)
  • Methane (CH₄)
  • Nitrous oxide (N₂O)
  • Ozone (O₃)
  • Water vapour
  • Synthetic gases like chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs)

Key Features of Draft GEI Target Rules, 2025

  • Baseline Year: 2023–24
  • Target Years: 2025–26 and 2026–27
  • The rules propose sector-wise reduction targets in emissions intensity for specific industrial categories.
  • Sectors Covered:
  • Aluminium: 13 major plants
  • Cement: 186 energy-intensive units
  • Pulp and Paper: 53 identified units
  • Chlor-Alkali: 30 designated plants
  • These sectors were chosen based on their high energy consumption and carbon footprint.

Alignment with National Climate Goals

  • Supports India’s Nationally Determined Contribution (NDC) under the Paris Agreement:
  • Reduce emissions intensity of GDP by 45% by 2030, compared to 2005 levels.
  • Complements India’s Long-Term Low-Carbon Development Strategy submitted at COP27.

Government Initiatives Supporting GEI Goals

1. Perform, Achieve and Trade (PAT) Scheme

  • Launched in 2012 by the Bureau of Energy Efficiency (BEE)
  • A market-based mechanism that assigns energy efficiency targets to large industrial units (called Designated Consumers).
  • Units that over-achieve targets earn Energy Saving Certificates (ESCerts) which are tradable.

2. Carbon Credit Trading Scheme (CCTS), 2023

  • Provides a domestic platform for trading carbon credits among entities.
  • Entities that emit less than their targets can sell carbon credits; those who exceed limits can buy credits to offset their emissions.
  • Managed by the BEE, regulated under the Energy Conservation Act.

Carbon Markets: A Strategic Tool for Emission Reduction

  • Carbon markets allow nations and industries to meet emissions targets through economic instruments.
  • Carbon Credit = 1 tonne of CO₂ equivalent reduced, avoided, or removed.
  • Types:
  • Compliance Markets: Governed by international treaties like the Kyoto Protocol (Article 17), where nations can buy/sell emissions allowances.
  • Voluntary Carbon Markets: Private actors invest in carbon offset projects (e.g., afforestation), generate credits, and sell them to corporates or nations.

Voluntary Offsets and Private Participation

  • Companies or individuals can undertake activities such as:
  • Afforestation and reforestation
  • Renewable energy projects
  • Soil carbon sequestration
  • These generate voluntary carbon offsets, mostly sold in global carbon markets (for now).
  • India plans to integrate domestic voluntary credits under a regulated carbon market framework.

Significance of Draft GEI Rules

  • Institutionalises emissions monitoring in India’s core industrial sectors.
  • Combines regulatory and market-based approaches to promote environmental and economic synergy.
  • Creates accountability and flexibility for industries to comply via performance or carbon credit purchase.
  • Encourages innovation, energy efficiency, and green technologies in industrial processes.
  • Promotes participation from MSMEs, startups, and clean-tech providers through a structured carbon ecosystem.

Challenges Ahead

  • Monitoring and verification of emissions across complex supply chains.
  • Ensuring fair target setting for diverse industrial units with varied capacities.
  • Avoiding market manipulation in carbon credit pricing and trading.
  • Integrating with international carbon markets while protecting domestic industrial competitiveness.

Conclusion

  • The Draft GEI Target Rules represent a landmark policy tool in India’s climate governance toolkit.
  • By enabling measurable, reportable, and verifiable (MRV) emissions control in core sectors, and combining this with carbon trading flexibility, the rules pave the way for India’s just and inclusive energy transition.

 

Source: https://indianexpress.com/article/explained/explained-climate/emissions-intensity-targets-9971470/