It’s not often that a line in the Gazette can shift the course of an entire market, but this notification just did. With the 2025 GEI targets under CCTS now formalised, India has moved from intent to implementation.
The MOEFCC - Ministry of Environment, Forest and Climate Change has recently notified the Greenhouse Gas Emission Intensity (GEI) Targets, 2025 under the Carbon Credit Trading Scheme (CCTS), 2023 – establishing a strong regulatory foundation for India’s carbon market.
For the first time, we have a domestic framework that quantifies emissions across sectors that matter. This isn’t about penalties, it’s about clarity, credibility and a market signal that’s long overdue. It shows the Government of India is serious and looking to leverage the best from the international carbon markets, whether compliance or voluntary (as recently notified under scope of CCTS).
The option to trade credits or reduce in-house creates space for strategy, not just compliance. The government’s call for public feedback also reflects a welcome seriousness about shaping policy through consultation. For industry leaders, this is the moment to move from carbon accounting to carbon action. EKI sees this as the start of India’s most significant climate-market transformation yet, and we’re committed to helping stakeholders navigate and lead in this new era.
Quick Facts:
Scheme: Carbon Credit Trading Scheme (CCTS) 2023
Notification Date: April 2025
Issued By: Ministry of Environment, Forest and Climate Change (MoEFCC), Government of India
Purpose:
Establish India’s first compliance-based domestic carbon market.
Reduce Greenhouse Gas Emission Intensity (GEI), defined as emissions per unit of output, across key sectors.
Encourage decarbonisation through a market-driven mechanism, allowing industries to pursue low-carbon growth pathways.
Coverage:
Over 290 identified entities across high-emission sectors.
Targets are based on verified emissions data and sectoral benchmarking.
Applies to both integrated industrial operations and standalone units.
Sectors Covered:
Aluminium – including entities like Vedanta, Hindalco, and NALCO (Sub-sectors: smelter, refinery)
Cement – including UltraTech, ACC, Ambuja, Dalmia, JSW Cement [Sub-categories: Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Composite, Clinkerization, White Cement, Grinding, Portland Slag Cement (PSC)]
Chlor Alkalie Pulp and Paper - (Sub Sectors: Integrated Plant, RCF Based Plant, Agro Based Plant, Speciality Paper Plant)
Compliance Options:
Internal Reductions: Implementing emission-reduction measures within the entity
Carbon Credit Purchase: Buying eligible credits from the Indian Carbon Market (ICM)
Surplus Trading: Selling excess credits if targets are overachieved
Public Feedback Period:
Duration: 60 days from the date of notification
Feedback to be submitted via email to: ccts.hsm-moefcc@gov.in
