(MENAFN- KNN India) New Delhi, Oct 11 (KNN) The Indian government has mandated legally binding emission intensity targets for 282 heavy‐polluting industrial units - including those in the cement, pulp & paper, aluminium, and chlor‐alkali sectors - beginning in financial year 2025‐26.

Under the new regulation, these units will need to lower their greenhouse gas emissions per unit of production (emission intensity) by 2026‐27, relative to a 2023‐24 baseline.

Failure to comply - or failure to submit sufficient carbon credit certificates - may invite penalties in the form of“environmental compensation,” imposed by the Central Pollution Control Board (CPCB).

Of the 282 units impacted, 186 are in the cement sector, followed by 53 in pulp & paper, 30 using the chlor‐alkali process, and 13 aluminium plants.

The required emission intensity reductions vary by industry: roughly 3.4 % for cement, 7.1 %for pulp & paper, 7.5 % for chlor‐alkali, and 5.8 % for aluminium (all compared to 2023‐24 levels).

If an industrial unit falls short, it may be penalized an amount equal to twice the average trading price of carbon credits during that compliance year.

The funds collected will be reserved in a dedicated account and used under the oversight of the national steering committee for India's carbon market.

These rules are part of the Compliance Mechanism under the Carbon Credit Trading Scheme (CCTS), 2023.

They align with India's commitment to achieving net‐zero emissions by 2070 and meeting its Nationally Determined Contributions (NDCs) by curbing, removing, or avoiding greenhouse gas emissions.

In sum, the government has set a clear regulatory pathway for India's most emission‐intensive industries to reduce their carbon footprint - with compliance obligations, financial penalties, and accountability mechanisms built into the system.

(KNN Bureau)

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