Government announces greenhouse gas emission intensity targets for aluminum, cement, chlorine-algases and paper
The Ministry of Environment, Forests and Climate Change (MOEFCC) has announced greenhouse gas emission intensity targets, specific to a single company, in four sectors – aluminum, cement, chlorine – Alkiri and paper.
These targets cover 13 aluminum producers (such as Vedanta and Hindalco), 186 cement, 30 chlorates and 53 paper companies.
Detailed targets are 2025-26 and 2026-27; baseline greenhouse gas emission intensity has been fixed based on production of each company in 2023-24.
For example, for Vedanta (which happens to be the first company on the list), production in 2023-24 was 12,38,336 tons of aluminum; baseline emission intensity has been conducted in 13.4927. Vedanta will have to lower it to 13.2260 and 12.8259 in 2025-26 and 2026-27, respectively.
Under the 2025 Greenhouse Gas Emission Intensity Target Rules, all these companies called “obligatory entities” should meet the emission intensity targets determined for them.
If an obligated entity goes beyond the achievement, it will have a carbon credit that can be sold on the market; if it does not meet the goal, it can still comply with the rules by purchasing carbon credit.
“If an obligatory entity fails to comply with the GEI objectives or fails to submit a carbon letter of credit equivalent to a compliance shortage, the Central Pollution Control Board (CPCB) will impose “environmental compensation” on the entity with such obligations so that its average price in the corresponding conforming year is equal to the average value of carbon equal to the average value of carbon. The rule is notified on Monday.
OE shall pay environmental compensation within 90 days from the date of such expropriation. Funds collected under environmental compensation shall be retained in a separate account.
“As the 2025 GEI targets for CCT are now formalized, India has shifted from intent to implementation.” Manish Dabkara, Chairman of EKI Energy Services and Chairman of the Indian Carbon Market Association.
“This is the first time we have a family framework that can quantify emissions from important sectors,” he said. “It has nothing to do with fines, but about clarity, credibility and long-term overdue market signals. It shows that the government is serious and wants to take advantage of the best things in the international carbon market, whether it is compliance or voluntary,” Dabukara said.
Published on April 22, 2025
