Emission Reduction Targets Made Mandatory For Petrochemicals, Iron & Steel, Cement and Paper

New Delhi, Sept 27 (KNN) The Indian government is planning to fix carbon emission reduction targets for four fossil fuel dependent sectors, two officials told Reuters. 

This potential move by India looks to align its industry with the country's greenhouse emissions reduction target. 

According to a report by Reuters, India will fix carbon emission intensity benchmarks and reduction targets for three years for companies in petrochemicals, iron and steel, cement and pulp and paper. 

The two government officials told the news agency that the market trading cycle will be annual. 

The companies in the four sectors are also likely to be the first ones to trade on the country's carbon trading market from April 2025, the officials added, which will enable them buy and sell carbon credits to meet their goals.

Companies which exceed their targets earn carbon credits that can be sold to firms which fall short of their goals.

“The mandates will be applicable from 2024-25 and the (carbon) trade will start in 2025-26,” one top government official said.

The targets will be aligned with the country's emission intensity - the total amount of greenhouse gas emissions emitted for every unit increase of gross domestic product (GDP) - reduction goals submitted to the United Nations, the officials said.

India has committed to cutting its ratio of greenhouse emissions to gross domestic product by 2030 to 45 per cent of its 2005 level and to net zero by 2070.

The carbon credits will be traded on the proposed carbon market provided under a legislation cleared by the Indian Parliament in December last year.

KNN Bureau