India sets first-ever GHG emission intensity targets

•India has introduced its first-ever Greenhouse Gas (GHG) emission intensity targets under the Carbon Credit Trading Scheme (CCTS).

1. Background of CCTS

•The Carbon Credit Trading Scheme (CCTS) was notified by the Ministry of Power on June 28, 2023.

2. Introduction of GHG Emission Intensity Targets

•On April 16, 2025, the Ministry of Environment, Forest and Climate Change (MoEF&CC) issued the Draft Greenhouse Gas (GHG) Emission Intensity Target Rules, 2025.

•These rules mandate GHG emission intensity targets for four high-emission industrial sectors for 2025-26 and 2026-27, using 2023-24 as the baseline.

Coverage and Targets

•The draft rules apply to 282 industrial plants across four sectors:
–Aluminium – 13 entities
–Cement – 186 entities
–Chlor-Alkali – 30 entities
–Pulp & Paper – 53 entities

•Reduction targets are distributed as 40% in the first year (2025-26) and 60% in the second year (2026-27).

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