1) What is Greenhouse gases Emission Intensity (GEI) Targets?
(1) The GEI Targets shall be calculated as per the methodology described in the Detailed Procedure as published by Bureau.
(2) The GEI Targets, for the specified trajectory period shall be as given in the Schedule annexed to this notification.
(3) In respect of each obligated entity mentioned in column (2) of the Schedule, the GEI targets shall be as mentioned in column (5) of the said schedule for the number of compliance years in relation to their baseline GEI, mentioned in column (3) of the said schedule.
2) What are Obligations of the Obligated Entity(s)?
- The obligated entity shall –
I. Achieve the GEI targets in the respective compliance year as per the Schedule, in accordance with the sub-paragraph (4) of paragraph 11 of Carbon Credit Trading Scheme.
II. Meet its GEI target for the respective compliance year by purchasing carbon credits certificates from the Indian carbon market, in case of not achieving the prescribed GEI target.
III. Submit the banked carbon credit certificates or carbon credit certificates purchased in the current compliance year equivalent to the shortfall to comply with the GEI target in the respective compliance year.
IV. Register on the Indian Carbon Market (ICM) Portal within the timeline and in the manner as stipulated in the Detailed Procedure as published by Bureau.
V. Submit all the documents within the timeline and in the manner as stipulated in the Detailed Procedure as published by the Bureau. All the submission shall be made through the Indian Carbon Market (ICM) Portal.
VI. Be liable to pay penalty, in case of non-compliance, against the shortfall in the respective compliance year.
3) What are the definition of Banked, Compliance year, Bureau, detailed procedure and GEI as per the rules?
I. “Banked” means the number of carbon credit certificates remaining with an obligated entity after the completion of compliance for the respective compliance year.
II. “Bureau” means the Bureau of Energy Efficiency as defined in section 2(d) of the Energy Conservation Act, 2001 (52 of 2001).
III. “Compliance year” means the financial year by which an obligated entity shall meet its greenhouse gases emission intensity target.
IV. ‘Detailed procedure’ shall have the same meaning as assigned to it in sub-paragraph (2) of paragraph 12 in the Carbon Credit Trading Scheme, 2023, notified vide S.O. 2825 (E) on 28th June, 2023.
V. “GEI” means greenhouse gases emission intensity in tCO2e/equivalent output or product.
- The words and expressions used herein and not defined but defined in the Environment Protection Act, 1986 (29 of 1986), the Energy Conservation Act, 2001 (52 of 2001), the Electricity Act, 2003 (36 of 2003) and the Carbon Credit Trading Scheme, 2023 shall have the same meanings respectively as assigned to them in those Acts and Scheme.
4) What will be the objectives of Greenhouse Gases Emission Intensity Target Rules 2025?
Objectives – (1) The main objectives of these rules are as follows:
I. To contribute to the attainment of the Nationally Determined Contribution by reducing GEI through the reduction or removal or avoidance of greenhouse gases emissions.
II. To promote the adoption of sustainable, cutting-edge technologies across traditionally high emission industries, for addressing climate change.
5) What will be procedure for Issuance of Carbon Credit Certificates?
(1) Bureau shall issue the carbon credits certificate as per the sub-paragraph 2(c) of paragraph 5 of the Carbon Credit Trading Scheme, 2023.
(2) The number of carbon credit certificates to be issued to the obligated entity as per sub-paragraph (6) of paragraph 11 of the Carbon Credit Trading Scheme, 2023, shall be determined as per the following formula:-
Number of carbon credit certificates to be issued in any compliance year: (GEI Target for that compliance year – GEI Achieved in that compliance year) x unit of equivalent product produced in that compliance year;
(3) The number of carbon credit certificates to be purchased by the Obligated Entity to meet the shortfall as per sub-paragraph (7) of paragraph 11 of the Carbon Credit Trading Scheme, 2023, shall be determined as per the following formula:-
Number of carbon credit certificates to be purchased in any compliance year: (GEI Achieved for that compliance year – GEI Target in that compliance year) x unit of equivalent product produced in that compliance year;
(4) The carbon credit certificates issued or purchased in any compliance year may be banked by the obligated entity in the manner as stipulated in the Detailed Procedure as published by the Bureau.