India: The government has notified the Greenhouse Gases Emission Intensity Target Rules, 2025, establishing legally binding reduction targets for 282 industrial units in cement and other heavy industries. The notification was issued by the Ministry of Environment on 8 October 2025 after considering all suggestions and objections received on the draft rules, which were published on 16 April 2025. Facilities must reduce greenhouse gas emissions per tonne of output from 2023–24 baseline levels during the 2025–26 to 2026–27 compliance period.
The rules implement the Energy Conservation (Amendment) Act, 2022, which supports the creation of a domestic carbon market. Plants emitting below the target will earn tradable credits; those exceeding limits must buy credits or pay a penalty equal to twice the average credit price. The average price will be determined by the Bureau of Energy Efficiency (BEE). The Central Pollution Control Board (CPCB) will impose and oversee recovery of penalties, which must be paid within 90 days. Major cement producers including UltraTech, Dalmia, JK Cement, Shree Cement and ACC are included, with reduction targets of up to 3.4% over two years. The framework supports India’s Paris Agreement commitments and prepares exporters for mechanisms such as the EU Carbon Border Adjustment Mechanism.
