Ministry of Environment Sets Ambitious Industrial Emission Targets for 2025: What You Need to Know About the New Carbon Credit Trading Scheme

The Ministry of Environment, Forest, and Climate Change recently announced the “Greenhouse Gas Emission Intensity Target Rules, 2025.” This new framework, part of India’s Carbon Credit Trading Scheme introduced in 2023, aims to cut down greenhouse gas (GHG) emissions across various industries.

Starting in 2025, the Bureau of Energy Efficiency (BEE) will set specific Emission Intensity Targets (EIT) for key sectors. These targets measure emissions in tonnes of CO₂ equivalent per tonne of production. Companies that can’t meet these goals will need to buy carbon credit certificates or face penalties.

The goals of these rules are clear: reduce GHG emissions in high-emission industries and promote greener technologies. This initiative is crucial for India’s climate commitments, aiming to foster more efficient production methods.

To comply with the EITs, companies must submit their emissions data through the Indian Carbon Market (ICM) portal. Those falling short can purchase credits to make up the difference. An important aspect of this framework is that if businesses do not comply, they could face fines from the Central Pollution Control Board (CPCB) that could reach twice the average market price of carbon credits.

This initiative includes specific emission targets for major industries like aluminium and cement. For instance, Vedanta Limited’s smelter in Odisha needs to lower its emission intensity from 13.4927 in 2023-24 to 13.2260 by 2025-26. This shows a clear pathway for progress over the next few years.

India’s move towards a carbon trading market aims to decarbonize its industrial sectors while staying committed to economic growth. As of now, stakeholders have 60 days to comment on this draft, indicating an effort for collective input in shaping these laws.

Historically, India has struggled with pollution and climate change, often balancing economic growth with environmental responsibilities. This new framework reflects a significant shift towards green initiatives. According to a recent survey by the World Economic Forum, 70% of Indian companies are now prioritizing sustainability in their business strategies, signaling a broader cultural change towards environmental responsibility.

Overall, this policy could be a game changer for India, helping industries meet climate goals while promoting sustainable practices.

For more insights into India’s environmental strategies, you can refer to the [Ministry of Environment, Forest, and Climate Change](https://www.moef.gov.in/). Keeping an eye on how businesses react to these new rules will be important as we move towards a more sustainable future.

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Carbon Credits,Carbon trading scheme,Emission Targets,Greenhouse Gas Reduction,India