Environment Ministry Issues GHG Intensity Target Rules

The Central Government has formally notified the Greenhouse Gas Emissions Intensity Target Rules, 2025, under the Environment (Protection) Act, 1986. These rules establish clear emission intensity targets for responsible entities as part of India’s Carbon Credit Trading Scheme, 2023. The targets, defined in terms of tCO2e per product output, aim to regulate and minimize greenhouse gas emissions in line with national sustainability goals.

Under the new framework, entities will have to achieve annual emission targets, register under the Indian Carbon Market Portal, and submit compliance documents. Entities achieving lower emissions will receive carbon credit certificates, while entities failing to fulfill the targets will have to purchase additional credits to make up for their loss. Non-compliance will attract environmental compensation, calculated as twice the average trading price of carbon credits for that year.

The Bureau of Energy Efficiency will issue credits and monitor performance, while the Central Pollution Control Board (CPCB) will impose penalties for violations. These regulations reinforce India's commitment to a low-carbon economy through a market-based regulatory approach.