Carbon-heavy sectors handed green targets, liable to fines

NEW DELHI: All traditionally high-emission industries in India - such as aluminum, cement and pulp & paper - will be required to reduce greenhouse gas (GHG) emissions to meet specific targets. For the first time, the environment ministry has set GHG emission intensity (GEI) reduction targets for two years, beginning 2025-26, covering 282 obligated entities across the country. These industrial units will be liable to pay a penalty for non-compliance.

The ministry has come out with a draft notification on this under the compliance mechanism of the Carbon Credit Trading Scheme, 2023. It will be finalised after analysing objections or suggestions of stakeholders who are expected to send their comments to the ministry within 60 days.

Industries which will have to reduce GEI within a specified time-period include 13 aluminium plants of Vedanta, Hindalco, Bharat Aluminium, Nalco and others; 186 cement plants of JK Cement, Dalmia Cement, Shree Cement, UltraTech, ACC, Ambuja, JSW Cement and others; 53 pulp & paper plants; and 30 plants that use Chlor-Alkali process to extract certain chemicals. If these industries do not meet their GEI targets, they will have to purchase carbon credit certificates from the Indian carbon market.