India Implements Binding Emission Targets for Pulp and Paper Sector, Impacting Major Companies

India's new Greenhouse Gas Emission Intensity (GEI) Target Rules have set legally binding emissions reduction targets for 53 pulp and paper units across the country for 2025-26 and 2026-27. The rules require these units to reduce greenhouse gas emissions per tonne of product output, with targets of up to a 15% reduction over two years. Compliance will earn companies tradable carbon credits under the Carbon Credit Trading Scheme, while non-compliance may result in purchasing credits or paying penalties. Major pulp and paper companies affected include JK Paper, Grasim Industries, and other leading producers. This initiative supports India's commitment under the Paris Agreement to reduce emission intensity significantly by 2030. The rules mark a major regulatory step, expected to drive sustainability improvements and operational changes in the pulp and paper industry.