Draft Greenhouse Gases Emission Intensity Target Rules
Why focus: GS3 Environment — highly testable for Carbon Credit Trading Scheme 2023 compliance framework. Ripe for How-Many-Correct assertion traps.
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Metric Shift: The regulatory focus transitioned from tracking 'energy saved' under the PAT scheme to 'Greenhouse Gas Emission Intensity' (GEI), measured strictly in tonnes of CO2 equivalent per unit of output (tCO2e/unit).
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Statutory Enforcement: The rules shifted the framework from a voluntary offset mechanism to a legally binding compliance market for designated entities in four initial sectors (Aluminium, Cement, Chlor-Alkali, and Pulp & Paper).
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Baseline and Credit Mechanism: Outperforming entities are now issued Carbon Credit Certificates (CCCs) by the Bureau of Energy Efficiency (BEE), while underperforming entities must purchase these certificates to cover their shortfall.
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Environmental Compensation: Rule 6 introduces a strict penalty mechanism where non-compliant entities face a fine equal to twice the average trading price of carbon credits during that compliance year, payable within 90 days.
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Regulatory Synergy: The rules clearly delineated roles, assigning the BEE to handle baseline calculations and CCC issuance, and the Central Pollution Control Board (CPCB) to enforce financial penalties.
What Did NOT Change
The framework deliberately maintained an 'intensity-based' target system rather than imposing an absolute cap on overall emissions. This ensures that India's industrial output and economic growth are not artificially restricted, aligning with the needs of a developing economy seeking to decouple growth from proportional emission increases.
Prelims Angle
NCERT Connection
Common Misconceptions
✗ India's new carbon market rules place a hard limit on the total volume of greenhouse gases a factory can emit.
✓ The rules cap the 'emission intensity' (emissions per unit of product produced) rather than the absolute total emissions.
Many confuse India's system with the European Union Emissions Trading System (EU ETS), which uses an absolute 'cap-and-trade' mechanism, whereas India uses a 'baseline-and-credit' intensity mechanism.
✗ The Carbon Credit Trading Scheme operates exclusively under the Environment (Protection) Act, 1986.
✓ The foundational CCTS was notified under the Energy Conservation Act, 2001, while these specific target rules and penalty mechanisms draw their legal backing from the Environment (Protection) Act, 1986.
The dual-legislation approach involves multiple ministries (Ministry of Power and MoEFCC), leading to confusion about the statutory origins of the scheme.
Practice Questions
Q1
How Many CorrectConsider the following statements regarding the Draft Greenhouse Gases Emission Intensity Target Rules, 2025: 1. They mandate an absolute reduction in total greenhouse gas emissions for obligated entities by the compliance year 2026-27. 2. The rules introduce an Environmental Compensation penalty set at twice the average market price of a carbon credit for non-compliance. 3. The Central Pollution Control Board (CPCB) is responsible for the issuance of Carbon Credit Certificates (CCCs). How many of the above statements are correct?
Q2
Match the FollowingMatch the following entities/concepts with their roles under India's Carbon Credit Trading Scheme (CCTS) framework: List I (Entity/Concept) A. Bureau of Energy Efficiency (BEE) B. Central Pollution Control Board (CPCB) C. Perform, Achieve and Trade (PAT) D. Greenhouse Gas Emission Intensity (GEI) List II (Role/Definition) 1. Measured as tonnes of CO2 equivalent per unit of output 2. Enforces Environmental Compensation for target shortfalls 3. Predecessor mechanism focused purely on energy efficiency 4. Sets baselines and issues Carbon Credit Certificates Select the correct code:
Q3
Assertion & ReasonAssertion (A): The Greenhouse Gases Emission Intensity Target Rules, 2025 do not impose a strict ceiling on the total volume of industrial production in India. Reason (R): The compliance mechanism relies on targets measured in tonnes of CO2 equivalent per unit of output, allowing industries to expand production as long as they become cleaner per unit. Select the correct answer: