Overview

• Notified on October 8, the Greenhouse Gases Emission Intensity Target Rules, 2025 apply to 282 units in cement (186), pulp and paper (53), chlor-alkali (30) and aluminium (13).
• Targets use a 2023–24 baseline with mandatory compliance in 2025–26 and 2026–27, measured in tonnes of CO2 equivalent per unit of output.
• Facilities outperforming their targets earn tradable carbon credit certificates issued by the Bureau of Energy Efficiency, while shortfalls must be met by purchasing credits.
• The Central Pollution Control Board will levy environmental compensation for non-compliance equal to twice the average annual carbon credit trading price, payable within 90 days, with proceeds supporting the carbon market framework.
• Overall cuts through 2026–27 are estimated at about 3.4% for cement, 5.8% for aluminium, 7.5% for chlor-alkali and 7.1% for pulp and paper, with listed targets covering firms such as Ultratech, Dalmia, Shree Cement, Vedanta, Hindalco and JK Paper.