Main polluting industries in 4 sectors — aluminium, cement, pulp and paper and chlor-alkali — should adjust to the federal government’s greenhouse fuel discount targets for FY26 and FY27. Failing to take action, they should buy carbon credit or pay environmental compensation.
The Union Ministry of Atmosphere, Forest and Local weather Change has issued a draft notification on this beneath the compliance mechanism of the Carbon Credit score Buying and selling Scheme, 2023. Which means business working in these sectors should adjust to the ministry’s greenhouse fuel 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 business 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 reaching the prescribed GEI goal. Failing, they are going to be liable to pay penalty, in case of non-compliance, in opposition to the shortfall within the respective compliance 12 months,” stated the notification launched on April 24.
The industries beneath the ambit will now should take pro-active measures to scale back their emissions or purchase carbon credit score to stability the shortfall beneath the goal. It’s the first time that the federal government has come out with quantified emission discount targets for every business participant in these sectors.
The Carbon Credit score Buying and selling Scheme, 2023 beneath the Vitality 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 scale back or take away or keep away from the greenhouse gases emissions.
