Gas Emission Intensity(GEI) Target Rules, 2025 | 15 Oct 2025

Source: IE 

Why in News? 

The Ministry of Environment, Forest and Climate Change (MoEFCC) has notified the first legally binding Greenhouse Gas Emission Intensity (GEI) Target Rules, 2025 to reduce industrial emissions. 

What are the GEI Target Rules, 2025? 

  • About: The GEI Rules set a legal limit on the amount of greenhouse gases (GHGs) that can be emitted per unit of product output (e.g., per tonne of cement or aluminium). 
    • It aims to operationalize India’s Carbon Credit Trading Scheme (CCTS), 2023, strengthening the country’s climate commitments under the Paris Agreement 2015. 
  • Key Features: 
    • The rules set specific GHG emission limits (in tonnes of CO2 equivalent per tonne of product) for the aluminium, cement, chlor-alkali, and pulp and paper industries. 
    • A total of 282 industrial units must comply with these targets for the financial years 2025-26 and 2026-27. 
    • Emission intensity is measured as tCO2e (tonnes of carbon dioxide equivalent), a standard unit that accounts for the global warming potential of all greenhouse gases, not just CO2. 
  • Compliance Mechanism: The system is designed to create a market-driven incentive for reducing emissions through a tradable credit system. 
    • Carbon Credits: Industries that reduce their emissions below the set target will earn carbon credit certificates, issued by the Bureau of Energy Efficiency. 
    • Penalties for Non-Compliance: Industries that fail to meet their targets have two options: 
      • Buy carbon credits from the domestic market to cover their shortfall. 
      • Face environmental compensation penalties imposed by the Central Pollution Control Board. 
  • Significance:  
    • Operationalizing the Carbon Market: Carbon credits can be traded on the domestic Carbon Credit Trading Scheme (CCTS), creating a financial market for carbon reduction. 
    • Meeting International Commitments: This directly supports India's pledge under the Paris Agreement to reduce the emissions intensity of its GDP by 45% by 2030 from 2005 levels. 
    • Evolution from PAT Scheme: It moves beyond the earlier Perform, Achieve, Trade (PAT) scheme by creating a formal domestic market framework specifically for trading carbon credits, not just promoting energy efficiency. 

Carbon Credit Trading Scheme, 2023 

  • About: The CCTS is a market-based mechanism to price GHG emissions and trade carbon credits, aiding India’s decarbonization. 
  • Framework: CCTS introduces carbon pricing via two mechanisms: 
    • Compliance Mechanism: Mandates energy-intensive industries to meet sector-specific GHG targets; exceeding targets earns Carbon Credit Certificates (CCC), shortfalls require purchasing credits. 
    • Offset Mechanism: Enables voluntary entities to earn carbon credits by reducing emissions. 
  • Supervision: It is supervised by several government bodies, including the BEE and the National Steering Committee for Indian Carbon Market (NSCICM). 

Frequently Asked Questions (FAQs) 

1. What is Greenhouse Gas Emission Intensity (GEI)? 
GEI is the amount of greenhouse gases (GHGs) emitted per unit of industrial product output, such as per tonne of cement or aluminium produced. 

2. What are the GEI Target Rules, 2025? 
They are India's first legally binding rules that set sector-specific emission intensity limits for the aluminium, cement, chlor-alkali, and pulp & paper industries to reduce their carbon footprint. 

3. What is the Carbon Credit Trading Scheme (CCTS)? 
The CCTS is a market-based mechanism to price GHG emissions and trade carbon credits, aiding India’s decarbonization. 

4. How is compliance with the GEI Rules ensured? 
Industries meeting targets earn carbon credits issued by the Bureau of Energy Efficiency, while non-compliance requires purchasing credits or paying environmental compensation under CPCB supervision. 

UPSC Civil Services Examination, Previous Year Question (PYQ)   

Q. Consider the following statements (2023)

Statement—I: Carbon markets are likely to be one of the most widespread tools in the fight against climate change.   

Statement—II: Carbon markets transfer resources from the private sector to the State.   

Which one of the following is correct in respect of the above statements?   

(a) Both Statement—I and Statement—II are correct and Statement—II is the correct explanation for Statement—I   

(b) Both Statement—I and Statement—II are correct and Statement—II is not the correct explanation for Statement—I   

(c) Statement—I is correct but Statement—II is incorrect   

(d) Statement—I is incorrect but Statement—II is correct   

Ans: (b)

Q. The concept of carbon credit originated from which one of the following? (2009)

(a) Earth Summit, Rio de Janeiro   

(b) Kyoto Protocol   

(c) Montreal Protocol   

(d) G-8 Summit, Heiligendamm   

Ans: (b)