Working towards greener environs
The level of air pollution in developing countries is rising alarmingly. India too is witnessing the same phenomenon and the quality of air in major cities is proving to be a major concern.
Air pollution levels in India are a significant concern, with many cities experiencing poor air quality. The current air quality index (AQI) in India is around 130, falling into the ‘poor’ category. This is based on real-time data, with PM2.5 levels at 52 µg/m³ and PM10 levels at 104 µg/m³.
The country’s capital city of Delhi is considered as one of the most polluted cities, with an AQI of 152, primarily due to PM2.5 pollutants. Mumbai too with an AQI of 161 is also experiencing poor air quality and Kolkata’s AQI is rated at of 181, clearly pointing towards the unhealthy air quality.
Interestingly, the government seems to be taking serious steps in this regard and the Greenhouse Gases Emission Intensity Target Rules, 2025 have finally been notified setting India’s first legally binding emission reduction targets for carbon-heavy industries.
The notification, issued by the environment ministry on Wednesday after considering all suggestions and objections received on the draft rules published on April 16, requires 282 industrial units across the aluminium, cement, pulp and paper and chlor-alkali sectors to reduce their greenhouse gas emissions per unit of output (emission intensity) from the 2023-24 baseline levels.
According to the notification, each facility must reduce the amount of greenhouse gases emitted per unit of output (measured in tonnes of carbon dioxide equivalent per tonne of product) compared to a 2023-24 baseline. The compliance period begins in 2025-26 and continues through 2026-27.
Notably, the move operationalises the Energy Conservation (Amendment) Act, 2022, which empowered the government to establish a domestic carbon market. It also builds on India’s Perform, Achieve and Trade (PAT) energy efficiency scheme which had earlier set energy-saving targets for industries but not direct carbon limits.
India’s carbon credit trading framework is seen as critical to meeting its nationally determined contribution (NDC) targets under the Paris Agreement, including reducing the emission intensity of GDP by 45 per cent by 2030 from 2005 levels and achieving net zero by 2070.
The rules also prepare Indian exporters to adapt to international mechanisms such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), which taxes carbon-intensive imports like cement, steel and aluminium.
By resorting to Greenhouse Gases Emission Intensity Targets, India needs to act on the plan seriously so that it does not end up losing on achieving the targets on this front.
Interestingly, missing GEI targets can have significant economic implications for India. The country can face Financial Penalties as Industries that fail to meet their GEI targets face penalties imposed by the Central Pollution Control Board (CPCB), which can be substantial. The penalty is set at twice the average trading price of carbon credits, making non-compliance costly.
Besides, failing to meet GEI targets can damage an industry’s reputation and erode stakeholder trust, potentially affecting business relationships, investments, and customer loyalty in the long run.
