India’s Ministry of Environment, Forest and Climate Change (MoEFCC) has published a draft consultation paper proposing rules on greenhouse gas emission intensity targets including ferrous industries, a government official said on Monday, June 30.
This step is part of India’s commitment to the Carbon Credit Trading Scheme (CCTS) 2023, a mechanism introduced to create a domestic carbon market.
Companies that exceed their targets must purchase carbon credits on the national carbon market to offset excess emissions. Those whose emissions are below the norm can trade their excess quotas.
Failure to comply with the obligations, as stated in the document will result in penalties. The Energy Efficiency Bureau (BEE) is responsible for calculating emission intensity targets using a detailed methodology laid down for industries including iron and steel.
In December last year, India announced a formula for classifying green steel. Metal products with CO2 emissions of less than 2.2 metric tons per metric ton of rolled steel will be considered green. According to the government document, the threshold for determining categories will be reviewed every three years.