Greenhouse gas targets: 282 industrial units under obligation to reduce emissions – Greenhouse gas targets: 282 industrial units under obligation to reduce emissions BusinessToday

Main polluting industries in 4 sectors — aluminium, cement, pulp and paper and chlor-alkali — can have to adjust to the federal government’s greenhouse gas discount targets for FY26 and FY27. Failing to achieve this, they are going to have to buy carbon credit or pay environmental compensation.

The Union Ministry of Atmosphere, Forest and Local weather Change has issued a draft notification on this under the compliance mechanism of the Carbon Credit score Buying and selling Scheme, 2023. Which means trade working in these sectors can have to adjust to the ministry’s greenhouse gas emission depth (GEI) targets.

The transfer additionally operationalises the home carbon market and carbon credit score buying and selling system for the 4 extremely polluting sectors. The ministry has specified the GEI targets for 13 aluminium crops of Vedanta, Nalco, Hindalco and Bharat Aluminium amongst others; 186 cement crops of UltraTech, ACC, Ambuja and JSW Cement amongst others.

“The trade will meet its GEI goal for the respective compliance 12 months by buying carbon credit certificates from the Indian carbon market, in case of not attaining the prescribed GEI goal. Failing, they are going to be liable to pay penalty, in case of non-compliance, towards the shortfall within the respective compliance 12 months,” stated the notification launched on April 24.

The industries under the ambit will now have to take professional-energetic measures to reduce their emissions or purchase carbon credit score to stability the shortfall under the goal. It’s the first time that the federal government has come out with quantified emission discount targets for every trade participant in these sectors.  

The Carbon Credit score Buying and selling Scheme, 2023 under the Power Conservation Act, 2001 defines the Indian carbon market framework the place a market framework is established for buying and selling of the carbon credit score certificates to reduce or take away or keep away from the greenhouse gases emissions.