E-Paper
Emission intensity targets notified for industries participating in carbon market
Targets issued for 3 companies in aluminium; 253 in iron and steel sector; 21 in petroleum refining; 11 in petrochemicals; 11 in naphtha; 173 spinning/textile units registered under the scheme
New Delhi: The union environment ministry has set greenhouse gas emission intensity targets for companies participating in the domestic carbon credit trading scheme.
Under the targets, the obligated entities or industries in aluminum; cement; chlor-alkali; paper and pulp will have to (1) achieve the greenhouse gas emission intensity targets in the respective compliance year as per the Schedule; (2) surrender the banked carbon credit certificates or carbon credit certificates purchased in the respective compliance year equivalent to the shortfall to comply with the greenhouse gas emission intensity target; and (3) register on the portal under the Indian Carbon Market Framework.
The carbon credit certificates to be issued to the obligated entities shall be determined based on a set formula. The number of carbon credit certificates to be purchased by the obligated entities to meet the shortfall under the said scheme shall also be determined by the same formula.
The carbon credit certificates issued or purchased may be banked by the obligated entities as provided in the detailed procedure under the said scheme.
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In case obligated entities fail to comply with or contravene any provisions of paragraph 4 of these rules, the Central Pollution Control Board (CPCB) shall impose an environmental compensation order on such obligated entities for the shortfall in the respective compliance year, which shall be equal to twice the average price at which carbon credit certificates are traded during the trading cycle of such compliance year, the notification states.
HT reported on July 1 that the union environment ministry has issued a draft notification on greenhouse gas emission intensity (GEI) targets for industries under India’s carbon credit trading scheme. These emission targets are for 2025-26 and 2026-27 for a range of industries under the carbon trading market and suggest that the carbon market will become operational during this period.
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The union government notified the Carbon Credit Trading Scheme in 2023 under the Energy Conservation Act, 2001, which defined the Indian carbon market framework, established for trading carbon credit certificates to reduce, remove, or avoid greenhouse gas emissions.
The targets have been issued for three companies in aluminium; 253 in the iron and steel sector; 21 in petroleum refining; 11 in petrochemicals; 11 in naphtha; and 173 spinning/textile units that have registered under the scheme.
