CCTS Targets for Cement Plants: What They Mean and Where Trees Fit
India has notified plant-wise greenhouse gas emission intensity (GEI) targets for 186 cement units, for 2025-26 and 2026-27 against a 2023-24 baseline. The targets measure a plant's own emissions per tonne of product, so tree plantation does not reduce them or count towards them. Clinker substitution, alternative fuels, energy efficiency, waste heat recovery and cleaner power are what lower the number.
What did the government notify for cement?
The Greenhouse Gases Emission Intensity Target Rules, 2025 were notified on 8 October 2025 under the Environment (Protection) Act. They cover aluminium, cement, chlor-alkali, and pulp and paper.
According to ICAP, the first notification covers 282 entities, of which 186 are cement units. Each unit gets its own target, expressed in tonnes of CO2 equivalent per tonne of product.
- Baseline year: 2023-24.
- Compliance years: 2025-26 and 2026-27.
- Size of the cut: ICAP summarises cement reductions at roughly 4.7% to 7.6%.
Targets are plant-specific. Two cement units of the same company can carry different numbers, so read the schedule for each site.
What happens if a plant beats or misses its target?
The Carbon Credit Trading Scheme (CCTS) is a "baseline-and-credit" market. A unit that ends below its target earns Carbon Credit Certificates (CCCs) that it can trade.
A unit above its target must buy and surrender CCCs to cover the gap. A summary of the 2025 rules gives the shortfall as achieved intensity minus target intensity, multiplied by total output.
If the unit does not cover the gap, the Central Pollution Control Board can impose environmental compensation. The same summary puts this at twice the average CCC price in that compliance year, payable within 90 days.
What goes into a cement plant's emission intensity?
The Bureau of Energy Efficiency's compliance procedure covers direct (scope 1) and indirect (scope 2) emissions, as ICAP explains. In practice that means kiln and fuel emissions, process emissions and purchased electricity.
ACEEE's July 2026 report on Indian cement splits the sector's emissions roughly as follows.
| Source | Share of cement sector emissions | What drives it |
|---|---|---|
| Limestone calcination | About 56% | Chemistry of making clinker |
| Fuel combustion | About 32% | Kiln and process heat |
| Electricity use | About 12% | Grinding, fans, conveyors |
None of these lines includes trees. Intensity is the plant's emissions divided by its output, and plantation changes neither.
Why doesn't plantation count towards the target?
Trees remove carbon from the air somewhere else; they do not cut what the kiln or the grid emits. Under the scheme, removal and reduction projects belong to a separate offset mechanism for non-obligated entities.
So a green belt, a Miyawaki patch or a farm forestry programme cannot be shown as progress on a CCTS target. Keep them out of CCTS dashboards and board notes on compliance.
Grow Billion Trees does not sell CCTS carbon credits from its plantations. Our guide to CCTS and tree projects explains the wider rules.
What does help a cement plant meet its target?
ACEEE lists five main levers for Indian cement. The 2024 cement EC we reviewed asks for several of the same steps.
| Lever | Where India stands (ACEEE) | Why it lowers intensity |
|---|---|---|
| Clinker substitution | Clinker-to-cement ratio about 0.73 | Less clinker means less calcination and fuel per tonne of cement. |
| Alternative fuels | Thermal substitution rate about 6%; 15-20% suggested by 2030 | Waste-derived and biomass fuels replace coal in the kiln. |
| Energy efficiency | About 731 kcal per kg of clinker; about 73 kWh per tonne | Less fuel and power for each tonne of output. |
| Cleaner electricity | Electricity is about 12% of emissions | Cuts scope 2 emissions. |
| Carbon capture (CCUS) | Longer-term option | The only route that tackles calcination at source. |
The cement EC asks the company to maximise fly ash and slag in blends as per BIS standards. It also asks for alternative fuels and co-processing, and waste heat recovery for the kiln and cooler.
Where does plantation still matter for a cement company?
Plantation has real, separate jobs. Mix them up and you risk a weak claim; keep them apart and each one stands.
- Environmental clearance: green belt conditions, 33% in many older ECs and category-based for new ones. See our green belt guide.
- Mines: reclamation of limestone quarries and dumps under mine closure plans.
- CSR: farm forestry and village greening near the plant.
- BRSR: land, biodiversity and community disclosures.
- Voluntary net zero: removals as a supplement to cutting emissions, never a substitute.
What should a cement EHS or sustainability head do now?
The first compliance year is already running. A short, practical list helps keep CCTS work and plantation work in the right boxes.
- Read the schedule. Note the 2023-24 baseline and both yearly targets for every cement unit you run.
- Check monitoring. Make sure fuel, process and power data match the BEE methodology your unit will be verified against.
- Rank the levers. Price clinker substitution, fuel switching, efficiency projects and renewable power plant by plant.
- Plan for a gap. Decide early whether you expect surplus certificates or a shortfall to cover.
- Separate the reports. Keep green belt, mine reclamation and CSR plantation in EC, mine and BRSR reports, not in CCTS updates.
This split protects the credibility of both. Regulators see clean CCTS data, and stakeholders see plantation reported for what it is.
How Grow Billion Trees helps
We help cement companies with the plantation side: green belts, mine reclamation and CSR farm forestry, each mapped and reported on GreenTrack. Carbon figures we share are estimates for voluntary and BRSR reporting, not CCTS compliance. Start from our cement industry page or plan a programme.
Further reading: CCTS targets for refineries and petrochemicals: where trees fit · Net Zero for Cement: What Nature-Based Projects Can and Cannot Claim
Frequently Asked Questions
How many cement plants have CCTS targets?
ICAP reports that the October 2025 notification covers 282 entities in four sectors, including 186 cement units.
What are the compliance years and baseline?
The compliance years are 2025-26 and 2026-27, measured against a 2023-24 baseline.
Can our green belt count towards our CCTS target?
No. The target measures the plant's own scope 1 and scope 2 emissions per tonne of product. Trees are outside that calculation.
Can we buy tree-based credits to meet the target?
A unit that misses its target covers the gap with Carbon Credit Certificates issued under the scheme. Grow Billion Trees does not sell CCTS credits from its plantations.
What is the penalty for missing the target?
A summary of the 2025 rules says CPCB can impose environmental compensation. It is twice the average CCC price for that year, payable within 90 days.
What lowers a cement plant's emission intensity fastest?
ACEEE points to clinker substitution, alternative fuels, energy efficiency, cleaner power and, later, carbon capture. Which comes first depends on the plant.
Sources: ICAP: India notifies emission intensity targets for nine sectors under CCTS · ICAP: India adopts regulations for planned compliance carbon market · Corporate Professionals: Greenhouse Gases Emission Intensity Target Rules, 2025 · ACEEE: India Cement Decarbonization (July 2026) · MoEFCC environmental clearance, integrated cement plant, Rajasthan (30 Sep 2024). Last updated: October 2026. Rules change; check the latest notification before you rely on any detail.
Keep reading
CCTS targets for refineries and petrochemicals: where trees fit
Net Zero for Cement: What Nature-Based Projects Can and Cannot Claim
Aluminium smelters and CCTS: what plantation can and cannot do
CCTS for Chlor-Alkali, Paper and Textiles: What Plantation Can Do
CCTS Targets for Iron and Steel Plants: What the Draft Means
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