Cement Manufacturers Association (CMA)

69 3. Cement Sector Coverage The cement industry was included among the first sectors transitioned from PAT to CCTS. Final emissions intensity targets were notified in phases for key industrial sectors, and cement plants have legally binding compliance targets for FY2026 and FY2027 using Fy2024 as the baseline. The scheme applies to covered entities that meet the prescribed energy-consumption thresholds, including integrated cement plants and grinding units. The target structure is sub-sector sensitive, which is important because cement product mixes differ widely across plants. Integrated plants, grinding units, and different cement types do not have identical emissions profiles, and a uniform benchmark would create inequity. CCTS therefore uses sectoral trajectories and entity-specific target ranges to reflect relative performance and sub-sector characteristics. 4. MRV and Compliance The success of CCTS depends on a robust monitoring, reporting, and verification system. Covered cement entities must monitor annual emissions using approved methodologies, report data to the Bureau of Energy Efficiency and relevant state agencies and submit to verification by accredited carbon verification agencies. The compliance year follows the financial year, and performance assessment must be filed within four months after year-end. This architecture is important for cement because the sector has both direct and indirect emissions, including fuel combustion in kilns, process emissions from calcination, and electricity-related emissions from grinding and auxiliary operations. Verification must therefore ensure data integrity across fuel accounting, clinker ratios, production volumes, and electricity consumption. Without credible MRV, the trading system would lose environmental integrity and market confidence. Diagram 2: Sectoral implementation flow Diagram 3: MRV structure 1. CEMENT PLANT CLASSIFICATION Integrated plant Grinding unit Product subtype and baseline 2. SECTORAL BENCHMARK AND TARGET RANGE 3. ANNUAL MRV AND VERIFICATION (Measurement, Reporting & Valuation) 4. CREDIT ISSUE OR SURRENDER OBLIGATION Plant data collection Annual emissions calculation Internal review and submission Accredited verifier audit BEE assessment CCC issuance or surrender 01 02 03 04 05 06