Question 521
The Greenhouse Gases Emission Intensity Target Rules, 2025, targets the specify values for which of the following compliance years?
- AOption (a)
2030–31 and 2035–36
- BOption (b)
2026–27 and 2027–28
- COption (c)
2027–28 and 2028–29
- DOption (d)
2025–26 and 2026–27
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Correct answer
2025–26 and 2026–27
Why this answer is correct
The correct answer is 2025–26 and 2026–27.
Key Points
- The Ministry of Power, in consultation with the Bureau of Energy Efficiency (BEE), has notified the Greenhouse Gases Emission Intensity Target Rules to establish a structured pathway for reducing industrial emissions in India.
- These rules specifically define the emission intensity targets for the compliance years 2025–26 and 2026–27. This period marks the initial phase of mandatory compliance under the broader Carbon Credit Trading Scheme (CCTS) launched in 2023.
- The targets are part of the transition of several industrial sectors from the Perform, Achieve and Trade (PAT) scheme to a comprehensive carbon market mechanism. These rules aim to align industrial output with India's climate commitments.
- Under these rules, Obligated Entities in sectors such as Iron and Steel, Cement, Aluminium, Pulp and Paper, and Petrochemicals are required to limit their greenhouse gas emissions per unit of production.
- The emission intensity is calculated based on tonnes of carbon dioxide equivalent (tCO2e) per unit of product, ensuring that even as production scales up, the carbon footprint per unit decreases.
Additional Information
- Carbon Credit Trading Scheme (CCTS):
- Launched under the Energy Conservation Act, 2001 (as amended in 2022), the CCTS is designed to create a domestic carbon market in India to incentivize Greenhouse Gas (GHG) reduction.
- Entities that exceed their targets can earn Carbon Credit Certificates (CCCs), while those failing to meet them must purchase credits from the market to remain compliant.
- Bureau of Energy Efficiency (BEE):
- The BEE serves as the administrator for the Indian Carbon Market (ICM). It is responsible for developing the trajectories, monitoring emissions, and maintaining the registry of Carbon Credit Certificates.
- The National Steering Committee for Indian Carbon Market (NSCICM), chaired by the Secretary of the Ministry of Power and the Secretary of the Ministry of Environment, Forest and Climate Change, provides oversight.
- International Commitments:
- These rules are a critical step toward achieving India's Nationally Determined Contributions (NDCs) under the Paris Agreement, which includes reducing the emission intensity of its GDP by 45% by 2030 compared to 2005 levels.
- This initiative also supports India's long-term goal of achieving Net Zero emissions by the year 2070, as announced at COP26 in Glasgow.
- Greenhouse Gases Covered:
- The rules track various GHGs beyond just carbon dioxide, including Methane (CH4), Nitrous Oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), and Sulphur Hexafluoride (SF6), all converted to a CO2 equivalent value.