Draft GEI Target Rules 2025

(Source – Indian Express, Section – Explained, Page – 16)

Analysis of the news:         

Understanding Greenhouse Gas Emissions Intensity (GEI)

• GEI refers to the amount of greenhouse gases (GHGs) emitted per unit of product output, measured in tonnes of CO₂ equivalent (tCO₂e).
• It accounts for all major GHGs like carbon dioxide, methane, and nitrous oxide, standardizing their warming impact.
• Lowering GEI means producing goods more efficiently with reduced environmental harm.

Key Provisions of the Draft GEI Target Rules

• The draft Rules set baseline emissions for 2023-24 and define phased reduction targets for 2025-26 and 2026-27.
• Targets are assigned to 282 industrial units across aluminium, cement, chlor-alkali, and pulp and paper industries.
• Big corporations like Vedanta, Ultratech, and JSW Cement fall under its ambit. Compliance mechanisms and penalties for non-compliance are also clearly outlined.

Importance of Setting Sector-Specific Targets

• Setting emission intensity targets is critical for pushing industries onto a low-carbon growth path.
• Industries can achieve reductions by adopting cleaner technologies, such as using biomass instead of coal or installing energy-efficient systems.
• The Rules directly support India’s goal of reducing the emissions intensity of GDP by 45% by 2030 compared to 2005 levels.

Linkage with the Carbon Credit Trading Scheme

• The GEI targets are tightly integrated with the Carbon Credit Trading Scheme.
• Industries that successfully reduce their emissions intensity can earn carbon credits, tradable on the Indian Carbon Market.
• Non-compliant industries must buy credits to cover their shortfall, ensuring a market-driven incentive for decarbonization.

Global Context and Future Outlook

• India’s initiative aligns with global practices where carbon markets, such as those in Europe and China, have driven emission reductions.
• The GEI target Rules aim not just at immediate compliance but at promoting long-term sustainable industrial practices, strengthening India’s leadership role in global climate governance.