Greenhouse Gas Emissions Intensity (GEI) Target Rules, 2025

Context: The Union government has notified draft Rules introducing targets for the reduction of greenhouse gas (GHG) emissions by “obligated entities” in energy-intensive sectors and industries.

Greenhouse Gas Emissions Intensity (GEI)

• Greenhouse Gases (GHGs) are gases that trap heat in the atmosphere and contribute to the “greenhouse effect” that raises surface temperature on Earth.
• Greenhouse Gas Emissions Intensity (GEI) refers to the amount of GHGs emitted per unit of product output.
• It is measured in tCO2e (tonnes of carbon dioxide equivalent).
  • It accounts for all greenhouse gases based on their global warming potential.
• GHGs include:
  • Natural: Water vapour, carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), ozone (O3).
  • Synthetic: Chlorofluorocarbons (CFCs), Hydrochlorofluorocarbons (HCFCs).

Key Provisions of the Draft Greenhouse Gas Emissions Intensity (GEI) Target Rules

• Baseline Year: 2023-24.
• Reduction Targets Set for: 2025-26 and 2026-27.
• Coverage: Highly energy-intensive sectors.
• Industries covered: 282 industrial units across 4 sectors.

Compliance and Penalties

• Industries must meet the assigned GEI reduction targets.
• Penalties will apply for non-compliance.
• Rules will be enforced by the Central Pollution Control Board (CPCB).

How GEI targets will help industries

• Industries will clearly know how much they need to cut emissions.
• Industries achieving reductions can earn carbon credits.
• Carbon credits can be sold to other industries or used to meet their own obligations.

Importance of Setting GEI Targets

• GEI targets will push industries towards low-carbon growth.
• It will support the Paris Agreement Commitment. India aims to reduce the emissions intensity of GDP by 45% by 2030 (compared to 2005 levels).
• Industries will adopt Cleaner fuels (e.g., switching from coal to biomass) & Energy-efficient manufacturing processes.

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