Emission intensity reduction targets set for carbon-intensive industries, penalties for non-compliance
Representative image
NEW DELHI: All traditionally high-emission industries in India — such as aluminum, cement and pulp & paper — will be required to reduce their 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 by reducing emissions for the respective compliance year, they will have to purchase carbon credit certificates from the Indian carbon market.
In case an obligated entity fails to comply with the GEI target or fails to submit the carbon credit certificates equivalent to the shortfall for compliance, the Central Pollution Control Board (CPCB) will impose 'environmental compensation' (penalty) for the shortfall.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Start Here - 2025 Top Trend Local network access control
Esseps
Learn More
Undo
The penalty will be equal to twice of the average price at which the carbon credit certificate is traded during the trading cycle of that compliance year. The average price will be determined by the Bureau of Energy Efficiency (BEE), which has finalised detailed procedures to fix GEI targets (in tonnes of carbon dioxide equivalent) for each of the high emission sectors from the 2023-24 baseline year.
'Environmental Compensation shall be paid within the 90 days from the day of such imposition,' said the draft notification.
The targets are in sync with the country's 'net zero' emission goal of 2070 and will contribute to meet its Nationally Determined Contribution (NDCs) — climate action targets — by reducing GEI through the reduction or removal or avoidance of GHG emissions.
It is expected that the move may also make these industries ready to face the European Union's proposed Carbon Border Adjustment Mechanism (CBAM), which is to be implemented from next year.
The CBAM is a tool to put a price through imposing border tax on carbon intensive goods, like iron & steel, aluminium and cement. India has, however, strongly opposed the EU's move as it will put a tariff burden on such products of developing countries and impact their trade.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
28 minutes ago
- Time of India
PM Modi to visit Cyprus in the middle of Turkiye-Pakistan solidarity
Prime Minister Narendra Modi (File photo) NEW DELHI: As India works to expand its footprint in Europe, PM Narendra Modi will visit Cyprus on his way to Canada for the G7 summit and Croatia while returning home. Both Cyprus and Croatia are members of the EU and the former will hold the rotating presidency of the EU Council for the first half of the next year. Modi was scheduled to travel to Croatia last month, along with the Netherlands and Norway, but the visit had to be postponed because of the military tensions between India and Pakistan. The G7 summit takes place at Kananaskis in Alberta from June 15 to 17, with Modi participating in the outreach session on the last day. The eleventh hour invitation by Canada means that PM's programme is yet to be finalised but government sources said efforts are underway to schedule bilateral meetings. The visit to Cyprus, only the 3rd by an Indian PM after A B Vajpayee in 2002 and Indira Gandhi in 1983, will also be followed closely as it comes in the middle of tensions between India and Turkiye over the latter's support to Pakistan - and the show of solidarity by President Recep Erdogan himself - during the India-Pakistan military clash last month. Ankara's recognition of the so-called Turkish Republic of Northern Cyprus in the northern region that was seized by Turkish forces in 1974 and differences over gas exploration rights in the Eastern Mediterranean remain a constant source of tensions between Turkiye and Cyprus. India has consistently backed solution of what is known as the Cyprus problem through UNSC resolutions and international law. As Turkiye stands solidly with Pakistan, India has sought to strengthen ties with both Cyprus and Greece, focusing on defence and security cooperation. Modi became the first Indian PM to visit Greece in 40 years when he travelled to Athens in 2023. Both countries have supported India on issues concerning terrorism and also on Kashmir. According to the MEA, Cyprus has backed India on a number of significant issues like India's election to UNSC, the India-US Civil Nuclear Agreement, NSG membership and also the 1998 nuclear tests. Modi's visit to Croatia on his way back will also be the first visit by any Indian PM to the country. S Jaishankar became the first Indian foreign minister to visit the southeast European country in 2021 as the 2 countries looked to expand bilateral ties. Two years later, India and Croatia also signed an MoU for defence cooperation.
News18
30 minutes ago
- News18
Wipro Shares In Focus After Azim Premji Trust Sells Equities Worth Rs 5,057 Cr
Last Updated: The primary purchasers in this deal were three entities: Hasham Traders, Prazim Traders, and Prazim Trading and Investment Company Private Limited. Wipro Share Price: Wipro's shares garnered significant attention on Tuesday, June 10, following a major transaction where the Azim Premji Trust sold 20.23 crore equity shares worth Rs 5,057 crore through a block deal. According to NSE data, the equity price for each Wipro share was set at Rs 250. The primary purchasers in this deal were three entities: Hasham Traders, Prazim Traders, and Prazim Trading and Investment Company Private Limited. On Monday, Hasham Traders acquired 11.9 crore equity shares, Prazim Traders bought 5.95 crore shares, and Prazim Trading and Investment Company Pvt Ltd purchased 2.38 crore shares, all at an average price of Rs 250 per share. Wipro's shares closed at Rs 251.30 on BSE on Monday, marking a gain of 1.09 per cent. The stock opened at Rs 249.30, compared to the previous day's close at Rs 248.60. The Azim Premji Trust is a philanthropic organization established by Indian business magnate Azim Premji to support his philanthropic pursuits. It focuses on education, health, and livelihood, aiming to create a more just, equitable, humane, and sustainable society. Azim Premji Trust held 1,06,31,85,966 equity shares in the company which represented 10.15% stake as on March 31, 2025. First Published: June 10, 2025, 07:06 IST
News18
30 minutes ago
- News18
Stock Market Updates: GIFT Nifty Indicates A Positive Start For Sensex, Nifty On June 10
Last Updated: US-China trade talks, global cues, and institutional flows are likely to set the tone for Indian benchmark indices Sensex Today: US-China trade talks, global cues, and institutional flows are likely to set the tone for Indian benchmark indices, Sensex and Nifty, in today's trade. At 8:15 AM, GIFT Nifty futures were up by 61 points at 25,243, indicating a positive start for the domestic markets. Global Cues Asian markets advanced on Tuesday as investors kept a close eye on the ongoing US-China trade negotiations, now entering their second day. Talks in London on Monday saw US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer engage with a Chinese delegation led by Vice Premier He Lifeng. In the latest updates, Japan's Nikkei rose 0.5 per cent, the Topix index added 0.2 per cent, while South Korea's Kospi climbed 0.3 per cent. Australia's ASX200 gained 0.49 per cent. US stock futures were largely flat in early Asian trade as investors waited for more signals from the trade talks. On Monday, Wall Street had a mixed session: the S&P 500 edged up 0.09 per cent, the Nasdaq gained 0.31 per cent, while the Dow Jones closed marginally lower. First Published:
