Notification/Circular No.: G.S.R. 739(E) dated October 08, 2025
Applicable Act/Rule: Environment (Protection) Act, 1986
Effective Date – October 08, 2025
The Ministry of Environment, Forest and Climate Change (MoEF&CC) has notified the Greenhouse Gas Emission Intensity Target Rules, 2025 under the powers conferred by the Environment (Protection) Act, 1986. These rules operationalise the framework established under the Carbon Credit Trading Scheme, 2023 and are aligned with India’s energy efficiency and emission reduction commitments.
The rules define the emission intensity targets for mandatory entities in high-emission sectors such as aluminium and cement, establishing a measurable reduction trajectory for 2025–26 and 2026–27. Entities are required to achieve annual greenhouse gas (GHG) intensity targets based on sectoral baselines and will be issued Carbon Credit Certificates (CCC) for surplus reductions or required to purchase CCCs in case of shortfalls.
The Bureau of Energy Efficiency (BEE) will oversee the issuance and trading of certificates, while the Central Pollution Control Board (CPCB) will impose environmental compensation on non-compliant entities. The collected funds will be maintained in a dedicated account to support implementation of the carbon market mechanism.
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