In Short : India has set greenhouse gas emission intensity targets for 282 major industries from FY 2025–26, promoting market-driven decarbonisation through the Carbon Credit Trading Scheme. Companies emitting below targets can trade carbon credits, encouraging cleaner practices. Experts say this aligns with India’s climate goals and incentivizes innovation while aiming for a 45% emissions intensity cut by 2030.
In Detail : India’s Ministry of Environment, Forest, and Climate Change has proposed greenhouse gas emission intensity targets for 282 high-emission industries, beginning in the fiscal year 2025–26. These targets cover key sectors such as aluminium, cement, chlor-alkali, and pulp and paper. The move is aimed at reducing emissions while encouraging a more market-driven approach to decarbonisation.
The initiative forms a part of the Carbon Credit Trading Scheme (CCTS), which introduces legally binding emission intensity limits. Companies failing to meet the set targets will face penalties, while those emitting less than their assigned thresholds will earn carbon credits. These credits can be saved or traded with other firms, fostering a flexible, incentive-based model for emissions control.
Experts consider this a transformative step towards achieving India’s long-term climate commitments. The scheme is expected to motivate industries to adopt cleaner and more energy-efficient technologies. It also opens the door to increased investment in sustainable solutions, positioning India as a proactive player in global climate action.
The proposed structure includes two compliance periods—2025–26 and 2026–27. Firms can meet their targets either by reducing emissions internally or by purchasing credits through the Indian carbon market. This dual approach balances environmental responsibility with economic feasibility, making it easier for industries to transition without hampering growth.
This effort aligns with India’s pledge under the Paris Agreement to cut greenhouse gas emissions intensity by 45% from 2005 levels by 2030. By integrating climate policy with market mechanisms, India seeks to support both sustainability and industrial progress, without compromising on development goals.
The success of this strategy will depend on effective enforcement, robust monitoring systems, and widespread industry participation. If implemented well, it could set a global example of how emerging economies can balance economic development with ambitious climate goals.
