The notification issued by the MoEFCC underscored the Greenhouse Gas Emission Intensity (GEI) Targets for 2025, applying to sectors such as aluminium, cement, chlor-alkali, and pulp and paper.

May 5, 2025

The Ministry of Environment, Forest and Climate Change (MoEFCC) has released a draft notification for the setting up of the country’s first compliance-driven domestic carbon market, marking a significant step towards achieving the nation’s climate objectives, both on national and international front.

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Structured under the Carbon Credit Trading Scheme (CCTS), which was first introduced in June 2023, the draft proposal intended to encourage industries to adopt low-emission technologies, thereby helping India meet its Nationally Determined Contributions (NDCs) and honor international commitments, including those under the Paris Agreement.

The draft outlined Greenhouse Gas Emission Intensity (GEI) targets for 2025, targeting key industrial sectors such as pulp & paper, aluminium, chlor-alkali and cement. The targets would include specific emission reduction benchmarks for the fiscal years 2025–26 and 2026–27 to support gradual, sector-wise decarbonization.

The proposal was in line with the government’s broader strategy to establish a well-defined Indian Carbon Market (ICM), aiming to curb emissions through a system that assigned value to carbon via tradable carbon credit certificates.

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Stakeholders and the general public have been invited to provide feedback on the draft notification during a two-month consultation window.