Draft GEI Target Rules 2025: Emission Reduction Targets, Carbon Credit Trading, and India's Climate Goals/प्रस्तावित GEI लक्ष्य नियम 2025: भारत को स्वच्छ और हरित भविष्य की ओर ले जाना

Draft GEI Target Rules 2025: Pushing India Toward a Cleaner, Greener Future

🌏 Introduction: India’s Bold Climate Step in 2025

In a powerful move toward combating climate change, the Ministry of Environment, Forest and Climate Change (MoEFCC) unveiled the Draft Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025. This new framework targets emission reductions in high-impact industries and ties directly into India’s Carbon Credit Trading Scheme (CCTS), 2023—a crucial tool in achieving the country’s Paris Agreement goals.

With industries now under pressure to reduce their emissions, the GEI Rules reflect India’s commitment to balancing economic growth with environmental responsibility.

🌡️ What Are Greenhouse Gases (GHGs) and Why Do They Matter?

Before we dive into the rules, it’s important to understand the basics.

Greenhouse gases (GHGs) trap heat in Earth’s atmosphere, causing global warming. The most common GHGs include:

• Carbon dioxide (CO₂)

• Methane (CH₄)

• Nitrous oxide (N₂O)

• Water vapor

• Ozone (O₃)

Man-made activities—like manufacturing, power generation, and transportation—emit huge volumes of these gases. Tackling industrial GHG emissions is a key priority for climate action.

📉 What Is Greenhouse Gas Emissions Intensity (GEI)?

The GEI is a measure of how much GHG an industry emits to produce a unit of its output. For example, how much carbon dioxide a cement plant emits per tonne of cement produced.

In technical terms, the draft rules define it as:

“Greenhouse gases emission intensity in tCO₂e (tonnes of CO₂ equivalent) per equivalent product.”

This standard measurement helps track how “clean” or “dirty” a production process is.

🏭 What the Draft GEI Rules 2025 Say: A Summary

📌 Baseline and Targets

• The 2023–24 financial year is set as the baseline for emissions.

• Industries are given graduated reduction targets for 2025–26 and 2026–27.

• The draft rules are an extension of the CCTS 2023, which allows carbon credit trading based on how well industries meet these targets.

🧾 Who Must Comply?

The rules apply to energy-intensive sectors, including:

🏢 Major Companies Involved

Big names like Vedanta, Hindalco, Ultratech, Grasim, JK Cement, and Dalmia are among the firms that will be expected to reduce emissions and improve energy efficiency.

⚖️ Compliance and Penalties

• The rules include a compliance mechanism and penalties for non-compliance.

• Companies failing to meet targets may be required to buy carbon credits or pay fines.

💰 The Carbon Credit Trading Scheme (CCTS) 2023: How It Works

🛠️ Origin: From PAT to CCTS

India’s carbon trading system builds on the PAT Scheme (Perform, Achieve, Trade) launched in 2012, which promoted energy efficiency in industries.

CCTS 2023 evolves this idea further by:

• Shifting the focus from just energy efficiency to direct emissions reductions.

• Introducing industry-specific GEI targets.

• Allowing companies to earn carbon credits for exceeding their targets.

🎯 Why It Matters

These rules provide both regulatory pressure and financial incentives to decarbonize. For instance, a cement plant can:

• Switch from coal to biomass fuel,

• Install energy-efficient kilns, or

• Use alternative building materials.

By doing so, they can generate carbon credits, which are either:

• Sold to other industries needing to meet their targets, or

• Saved to offset future emissions.

🌐 Aligning With India’s Global Climate Promises

India, under the Paris Agreement, pledged to:

• Cut emissions intensity of GDP by 45% by 2030 (compared to 2005 levels).

The GEI Rules 2025 and the CCTS are the backbone of this mission. They:

• Encourage industries to adopt cleaner technologies,

• Promote climate-smart infrastructure, and

• Make Indian industry more globally competitive.

This system is also aligned with international carbon markets, like those in:

• The European Union (EU ETS), running since 2005.

• China’s national carbon market, operational since 2021.

🔁 How the System Works: GEI and Carbon Credit Trading

🎯 GEI Targets Drive Change

Each company gets a specific GEI reduction target. If it emits less than the target, it earns carbon credits.

🔄 Credits Can Be Traded

These credits are traded via the Indian Carbon Market (ICM) platform, under the supervision of the Bureau of Energy Efficiency (BEE) and Ministry of Power.

⚖️ Non-compliance Comes at a Cost

If companies miss targets:

• They must buy credits from others, or

• Face penalties imposed by the Central Pollution Control Board (CPCB).

This cap-and-trade model encourages innovation while maintaining fairness.

🏆 The Bigger Picture: Benefits for All

🏭 For Industry

• Chance to profit from surplus carbon credits.

• Gradual, flexible path for less-resourced sectors to catch up.

• Drive toward modernization and clean technology.

👥 For Citizens

• Cleaner air and water from reduced pollution.

• Long-term benefits from climate resilience and sustainable development.

🇮🇳 For India

• A globally respected model for climate-smart growth.

• Helps balance the dual goals of industrial growth and environmental protection.

✅ MCQs

1. What do the Draft GEI Target Rules 2025 aim to do?
A) Eliminate taxes on fossil fuels
B) Set emission reduction targets for energy-intensive sectors
C) Ban carbon trading
D) Introduce electric vehicles nationwide
✅ Answer: B) Set emission reduction targets for energy-intensive sectors

2. What does GEI stand for?
A) Global Emission Index
B) Greenhouse Emissions Intensity
C) Green Energy Infrastructure
D) General Environmental Impact
✅ Answer: B) Greenhouse Emissions Intensity

3. Which industry is NOT included under the Draft GEI Rules 2025?
A) Aluminium
B) Cement
C) Pulp & Paper
D) Pharmaceuticals
✅ Answer: D) Pharmaceuticals

4. What does CCTS 2023 allow companies to do?
A) Import carbon
B) Trade carbon credits earned by reducing emissions
C) Delay compliance with pollution norms
D) Subsidize fossil fuel use
✅ Answer: B) Trade carbon credits earned by reducing emissions

5. How do the GEI Rules help India meet its Paris Agreement goals?
A) By reducing coal production
B) By setting targets to cut emissions intensity of GDP
C) By banning plastic
D) By increasing water exports
✅ Answer: B) By setting targets to cut emissions intensity of GDP