Overview

• The Environment Ministry notified the Greenhouse Gases Emission Intensity Target Rules, 2025, on October 8, setting obligations against a 2023–24 baseline with a first compliance cycle covering 2025–26 and 2026–27.
• The rules cover 282 units across aluminium, cement, chlor-alkali, and pulp and paper, including 186 cement plants, 13 aluminium units, 30 chlor-alkali facilities, and 53 pulp and paper units.
• Plants that outperform their assigned limits earn tradable carbon credits issued by the Bureau of Energy Efficiency, while shortfalls must be bridged by purchasing credits or facing monetary penalties.
• Non-compliance triggers environmental compensation equal to twice the average carbon credit trading price for the year, with the average set by BEE and recovery enforced by the Central Pollution Control Board within 90 days.
• Independent assessments indicate modest reductions in 2025–26 that rise in 2026–27, with ranges reported for cement at roughly 4.7–7.6% and pulp and paper up to 15% over two years, and the schedule names major firms such as Vedanta, Hindalco, UltraTech, Dalmia, Shree Cement and JK Paper.