New Delhi – The government has notified the Greenhouse Gases Emission Intensity Target Rules, 2025, setting India's first legally binding emission reduction targets for carbon-heavy industries.

The notification, issued by the environment ministry on October 8 after considering all suggestions and objections received on the draft rules published on April 16, requires 282 industrial units across the aluminium, cement, pulp and paper and chlor-alkali sectors to reduce their greenhouse gas emissions per unit of output (emission intensity) from the 2023-24 baseline levels.

According to the notification, each facility must reduce the amount of greenhouse gases emitted per unit of output (measured in tonnes of carbon dioxide equivalent per tonne of product) compared to a 2023-24 baseline. The compliance period begins in 2025-26 and continues through 2026-27.

The move operationalises the Energy Conservation (Amendment) Act, 2022, which empowered the government to establish a domestic carbon market.

It also builds on India's Perform, Achieve and Trade (PAT) energy efficiency scheme which had earlier set energy-saving targets for industries but not direct carbon limits.

According to the rules, facilities that emit less than their assigned target can earn tradable carbon credit certificates, while those exceeding the target must purchase equivalent credits from the Indian carbon market or pay a penalty.

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