India has unveiled draft rules setting greenhouse gas emission intensity targets for key industries, including the steel sector, as part of its Carbon Credit Trading Scheme (CCTS) 2023. The Ministry of Environment, Forest and Climate Change released the "Greenhouse Gas Emission Intensity Targets Rules 2025" on June 23, with the draft open for public consultation until August 23.
The proposal outlines emissions benchmarks for sectors such as ferrous metallurgy, covering 253 entities. Companies exceeding their allocated emission limits will need to purchase carbon credits on India’s emerging carbon market, while those operating below the benchmarks can trade unused quotas. The Energy Efficiency Bureau will calculate specific emission thresholds based on a detailed methodology.
Non-compliance with the new rules could result in penalties. The initiative aims to create a structured approach to industrial decarbonization while incentivizing efficiency improvements through market-based mechanisms.
In a related move, India previously defined green steel as steel with carbon emissions below 2.2 tons of COâ‚‚ per ton of rolled product, with this threshold to be reviewed every three years. The finalized rules for emission targets will be issued after reviewing stakeholder feedback.
