Why in the news
- The Union Government has expanded the Greenhouse Gas Emission Intensity reduction regime to four additional industrial sectors under amended rules notified by the Ministry of Environment, Forest and Climate Change.
- The move operationalises India’s Carbon Credit Trading framework and strengthens compliance based climate mitigation.
Newly included sectors
- Petroleum refineries, Petrochemicals, Textiles, andSecondary aluminium
- These are in addition to aluminium, cement, chlor alkali and pulp and paper sectors notified earlier.
Coverage
- 208 industrial units across India
- 173 textile units
- 21 petroleum refineries
- 11 petrochemical units
- 3 secondary aluminium units
- Major public sector and private companies covered include
- ONGC, Indian Oil, Bharat Petroleum, Hindustan Petroleum, Numaligarh Refinery and Reliance Industries.
Legal and policy framework
- Notified as Greenhouse Gases Emission Intensity Target Amendment Rules
- Issued under the compliance mechanism of the Carbon Credit Trading Scheme, 2023
- Enforced by the Central Pollution Control Board
What is GEI (Greenhouse Gas Emission Intensity) target?
- Mandatory reduction of GHG emissions per unit of output
- Baseline year is 2023 to 24
- Targets apply from 2025 to 26
- Overall reduction of 3 to 7 percent by 2026 to 27
Compliance and penalty
- Units must either
- Meet GEI targets
- Or submit carbon credit certificates equal to the shortfall
- Non compliance penalty
- Imposed as environmental compensation by CPCB
- Amount equals twice the average carbon credit price in that trading cycle
- Payable within 90 days
Climate significance
- Aligns with India’s net zero target of 2070
- Supports India’s Nationally Determined Contribution under the Paris Agreement
- Promotes market driven decarbonisation instead of criminal penalties
- Pushes energy efficiency and cleaner technologies in high emission sectors
UPSC Prelims pointers
- GEI focuses on emission intensity, not absolute emissions
- Linked to Carbon Credit Trading Scheme 2023
- Penalty equals 2 times average carbon credit price
- Enforcement by CPCB
- Supports India’s net zero 2070 pathway
| [2011] Regarding “carbon credits”, which one of the following statements is not correct?Â
(a) The carbon credit system was ratified in conjunction with the Kyoto Protocol (b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota (c) The goal of the carbon credit system is to limit the increase of carbon dioxide emission (d) Carbon credits are traded at a price fixed from time to time by the United Nations environment programs |
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