**Executive Summary**
The Government of India has notified Greenhouse Gas Emission Intensity (GEI) targets for additional carbon-intensive sectors under the Carbon Credit Trading Scheme (CCTS). This notification, issued on 13.01.2026, brings Petroleum Refineries, Petrochemicals, Textiles, and Secondary Aluminium under the compliance mechanism of the Indian Carbon Market (ICM). A total of 208 obligated entities across these sectors will now be required to meet specified emission intensity reduction targets.
**Key Points / Main Content**
* **General Overview:**
* Government notifies GEI targets for 208 more carbon-intensive industries.
* Notification issued on 13.01.2026.
* CCTS, notified in 2023, provides an overall framework for the functioning of the ICM.
* Objective of CCTS is to reduce or avoid greenhouse gas emissions.
* **Sectors Included:**
* Petroleum Refineries, Petrochemicals, Textiles and Secondary Aluminium are now included under the ICM.
* GEI targets were first notified in October 2025 for Aluminium, Cement, Chlor-Alkali, and Pulp & Paper.
* **Obligated Entities and Mechanisms:**
* 208 additional entities are required to meet specified emission intensity reduction targets.
* ICM now covers 490 obligated entities.
* CCTS operates through the Compliance Mechanism and the Offset Mechanism.
* Emission-intensive industries are designated as Obligated Entities and required to meet assigned GEI targets.
* Obligated Entities that outperform targets can receive Carbon Credit Certificates, tradable with entities that underperform.
**Impact Analysis**
**Obligated Entities (Petroleum Refineries, Petrochemicals, Textiles and Secondary Aluminium):**
* **Impact:** Required to meet specified emission intensity reduction targets under the CCTS.
* **Action Required:** Assess current emission levels, implement strategies to reduce emission intensity, and participate in the carbon credit trading mechanism, buying or selling credits as needed.
**Aluminium, Cement, Chlor-Alkali, and Pulp & Paper Sectors:**
* **Impact:** Already subject to GEI targets notified in October 2025; continuing requirements under CCTS.
* **Action Required:** Continue compliance with existing GEI targets and participate in the carbon credit trading mechanism.
**Government of India:**
* **Impact:** Overseeing and administering the CCTS and ICM.
* **Action Required:** Monitor compliance, adjust policies as needed, and ensure the effectiveness of the carbon credit trading mechanism.
Key Entities Referenced
Indian Carbon Market (ICM): A compliance mechanism for specified emission intensity reduction targets in carbon-intensive industries.
Carbon Credit Trading Scheme (CCTS): A scheme for reducing greenhouse gas emissions, providing a framework for the functioning of the Indian Carbon Market.
Greenhouse Gas Emission Intensity (GEI): Targets set for emission-intensive industries under the Carbon Credit Trading Scheme.
Ministry of Environment, Forest and Climate Change
Government notifies Greenhouse Gas Emission
Intensity Targets for 208 more Carbon-intensive
Industries
प्रव तथ: 22 JAN 2026 3:04PM by PIB Delhi
The Government of India has notified Greenhouse Gas Emission Intensity (GEI) targets for additional
carbon-intensive sectors under the Carbon Credit Trading Scheme (CCTS). The notification, issued on
13.01.2026, brings Petroleum Refineries, Petrochemicals, Textiles and Secondary Aluminium under the
compliance mechanism of the Indian Carbon Market (ICM).
A total of 208 obligated entities across these sectors will now be required to meet specified emission
intensity reduction targets. With this expansion, the compliance mechanism of the ICM now covers 490
obligated entities across India's most emission-intensive industries. The Government of India first notified
GEI targets in October 2025 for the Aluminium, Cement, Chlor-Alkali, and Pulp & Paper sectors covering
282 obligated entities.
The CCTS notified by the Government of India in 2023 provides an overall framework for the functioning
of the ICM. The objective of CCTS is to reduce or avoid greenhouse gas emissions from various sectors of
Indian economy by pricing the emissions through a carbon credit certificate trading mechanism.
The CCTS operates through two mechanisms: the Compliance Mechanism and the Offset Mechanism.
Under the Compliance Mechanism, emission-intensive industries designated as Obligated Entities are
required to meet assigned Greenhouse Gas Emission Intensity (GEI) targets. Obligated Entities that
outperform their targets are eligible to receive Carbon Credit Certificates which they can trade with
obligated entities which are unable to meet their targets.
This progress reflects years of sustained engagement with industry, rigorous technical assessment, and
coordinated efforts across institutions and stakeholders. As sectoral coverage deepens and the compliance
mechanism matures, the ICM is poised to play a central role in aligning industrial growth with India’s
long-term climate objectives and net-zero pathway.
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VM/GS
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