Govt Moots Emission Reduction Targets for Energy-Guzzling Cos

Proposes greenhouse gas reduction via carbon trading or sector-wise firm targets

- PUJA DAS

For the first time, India is looking to introduce a compliance mechanism aimed at reducing greenhouse gas (GHG) emissions across four of the country's most energy-intensive industrial sectors - aluminium, cement, chlor-alkali, and pulp & paper. The draft proposal seeks emission cuts through either carbon-credit trading or by setting company-specific emission reduction targets within each sector.

The draft outlines a schedule of emission intensity reductions for over 130 industrial entities, including major players like Vedanta, Hindalco, Nalco, UltraTech, ACC, Ambuja, Dalmia, and JSW Cement.

In a Gazette draft notification, the Ministry of Environment, Forest and Climate Change (MoEFCC) has proposed the Greenhouse Gas Emission Intensity (GEI) Target Rules, 2025. These rules are part of the country's evolving Carbon Credit Trading Scheme (CCTS), 2023.

The primary goal of the new rules is to help India meet its Nationally Determined Contribution (NDC) commitments by lowering GEI through reduced GHG emissions and encouraging the adoption of sustainable, low-emission technologies across high-polluting industries, the MoEFCC said in its draft notification.