Centre notifies second round of targets to curb emissions from carbon-heavy sectors

The first set of legally binding emission reduction targets was notified in October for four carbon-intensive sectors – aluminium, cement, chlor-alkali, pulp, and paper. These targets covered 282 high-emission industrial units and set targets through 2026-27.

From public-sector enterprises to private-sector giants

The latest notification has set targets for 208 industries across the petroleum refineries, petrochemical units, textile and secondary aluminium sectors. These comprised 173 textile units across sub-sectors such as spinning, processing, fibre, and composite; 21 petroleum refineries; 11 petrochemical units; and three secondary aluminium units. The nine sectors for which targets are now finalised are the focus, as their emissions are difficult to curb.

Public-sector enterprises Bharat Petroleum, Hindustan Petroleum, Indian Oil, Numaligarh Refineries, and ONGC, and private-sector giants Reliance Industries Ltd have been covered under the petroleum refineries and petrochemical units sector.

The Rules defined targets in terms of tCo2e per equivalent output or product. This refers to the tonnes of carbon dioxide equivalent used to measure the impact of all greenhouse gases, not just CO2, based on their warming potential. As a baseline, emissions intensity for 2023-24 was considered, and compliance targets have been set for 2025-26 through 2026-27.

According to an analysis by the Council on Energy, Environment and Water (CEEW) published last week, the aluminium, cement, chlor-alkali, pulp, and paper sector targets notified last October will result in a weighted average reduction of 2.71 per cent to 6.5 per cent.

It also stated that due to the delays in notifying the first round of targets, the government proportionately reduced targets to account for the elapsed period, which the CEEW analysis said made the final targets less stringent than originally proposed.

Carbon Credits Trading Scheme

India launched CCTS to create a framework for trading carbon credits, which incentivises reductions in carbon dioxide emissions and supports India’s climate action commitments under the 2015 Paris Climate Agreement.

Industries that achieve the legally binding targets earn credits, which they can sell to industries that fail to meet the targets. Industries that fail to comply with or contravene the provisions of the GEI target rules will have to pay an environmental compensation equal to twice the average price of carbon credits.

India has committed to reduce emissions intensity of its gross domestic product (the amount of energy used per unit of GDP) by 45 per cent by 2030, compared to 2005 levels, as part of its domestic commitments under the Paris agreement.