**Executive Summary**
The document is a response to Starred Question No. 140 in Lok Sabha, addressed to the Minister of Environment, Forest and Climate Change, concerning sustainability and environmental compliance for industries. The response, dated February 9, 2026, outlines the government's multi-pronged strategy to expand sustainability, environmental compliance, and emissions reporting. A statement detailing the response is laid on the Table of the House.
**Key Points / Main Content**
* **Government Strategy:**
* Employs a multi-pronged approach to expand sustainability, environmental compliance, and emissions-reporting requirements.
* Implements India's Long-Term Low Emission Development Strategies (LT-LEDS) to achieve Net Zero by 2070.
* LT-LEDS involves seven key strategic transitions, including low-carbon electricity, low-carbon transport, urban adaptation, low-emission industrial systems, CO2 removal, enhanced vegetation cover, and financial aspects of low carbon development.
* **Securities and Exchange Board of India (SEBI) Mandate:**
* SEBI mandates Business Responsibility and Sustainability Reporting (BRSR) for the top 1,000 listed entities (by market capitalisation) from 2022-23 onwards.
* Aims to promote the adoption of sustainable practices by corporates.
* **International Agreements:**
* India is a signatory to UNFCCC and its Paris Agreement.
* Article 6.2 of the Paris Agreement establishes principles for market-based mechanisms to enable cross-border investment, technology transfer, and capacity building for low carbon technologies.
* **National Framework for Indian Carbon Market (ICM):**
* Carbon Credit Trading Scheme (CCTS) was notified vide S.O. 2825 (E) dated June 28, 2023, and amended via notification S.O. 5369(E) on December 19, 2023.
* Greenhouse Gas (GHG) Emission Intensity Targets have been notified for seven sectors (Aluminum, Cement, Chlor-Alkali, Pulp & Paper, Petrochemicals, Petroleum refinery and textiles) covering 490 obligated entities.
* **Environmental Impact Assessment (EIA):**
* Projects listed in the EIA Notification, 2006, require prior Environmental Clearance (EC) for new projects/activities or expansions beyond specified thresholds.
* EC is granted based on recommendations from Expert Appraisal Committees, considering Environmental Impact Assessments.
* Suitable mitigation and sustainability measures are prescribed as part of the EC conditions.
* Projects granted EC must file six-monthly compliance reports via PARIVESH.
* **Consent Mechanism:**
* Projects are governed by a consent mechanism implemented by the Central Pollution Control Board (CPCB) and State Pollution Control Boards/Pollution Control Committees (SPCBs/SPCCs).
* Mechanism operates under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981.
* Projects are granted Consent To Establish (CTE) and Consent To Operate (CTO).
* **Monitoring and Compliance:**
* Compliance with CTE/CTO conditions is regularly monitored by respective SPCBs/SPCCs.
* The Ministry has notified the Environment Audit Rules, 2025 to strengthen environmental compliance.
**Impact Analysis**
**Government**
* **Impact**: The government needs to implement the multi-pronged strategies effectively to meet the sustainability goals.
* **Action Required**: Continue policy implementation, monitor progress of LT-LEDS, and ensure coordination between various ministries and agencies.
**Corporates (Top 1,000 listed entities)**
* **Impact**: These entities must adopt sustainable practices and disclose relevant information as mandated by SEBI under the BRSR framework.
* **Action Required**: Implement sustainable business practices, prepare and submit BRSR reports, and ensure compliance with relevant environmental regulations.
**Obligated Entities (in Aluminum, Cement, Chlor-Alkali, Pulp & Paper, Petrochemicals, Petroleum refinery, and Textiles sectors)**
* **Impact**: These entities must comply with the Greenhouse Gas (GHG) Emission Intensity Targets.
* **Action Required**: Implement measures to reduce GHG emissions, monitor and report emissions data, and comply with the Carbon Credit Trading Scheme (CCTS).
**Project Proponents (Undertaking projects listed in the EIA Notification, 2006)**
* **Impact**: Project proponents must undergo the Environmental Clearance (EC) process and comply with all associated conditions.
* **Action Required**: Conduct Environmental Impact Assessments, obtain EC before project commencement, implement mitigation and sustainability measures, and submit six-monthly compliance reports.
**State Pollution Control Boards/Pollution Control Committees (SPCBs/SPCCs)**
* **Impact**: SPCBs/SPCCs are responsible for implementing the consent mechanism and monitoring compliance with environmental regulations.
* **Action Required**: Process applications for CTE and CTO, monitor compliance with consent conditions, and enforce environmental regulations.
Key Entities Referenced
Ministry of Environment, Forest and Climate Change: The primary subject matter of the document, responsible for reforms to expand sustainability and environmental compliance.
Environmental Impact Assessment (EIA) Notification, 2006: Notification requiring prior Environmental Clearance (EC) for projects/activities that may have an impact on the environment.
Energy Conservation (Amendment) Act, 2022: Provides the powers for notifications related to the Carbon Credit Trading Scheme (CCTS).
Carbon Credit Trading Scheme (CCTS): The National Framework for Indian Carbon Market (ICM) which facilitates carbon trading.
Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981: Acts under which projects are granted Consent to Establish (CTE) and Consent to Operate (CTO).
GOVERNMENT OF INDIA
MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE
LOK SABHA
STARRED QUESTION NO 140
TO BE ANSWERED ON 09.02.2026
Sustainability and Environmental Compliance for Industries
*140. DR. BACHHAV SHOBHA DINESH:
Will the Minister of ENVIRONMENT, FOREST AND CLIMATE CHANGE be pleased to
state:
(a) whether the Government has any existing or proposed reforms to expand sustainability,
environmental compliance and emissions-reporting requirements to a broader set of
companies beyond the currently covered large listed entities;
(b) the regulatory framework in place or under consideration for controlling industrial
pollution and carbon emissions, including the use of market-based mechanisms such as
carbon pricing or emissions trading;
(c) whether any sector-wise assessment has been conducted on India’s readiness to meet
emerging global environmental standards; and
(d) the steps taken or proposed to be taken to ensure that environmental regulation
strengthens sustainability without adversely impacting domestic industry and
employment?
ANSWER
MINISTER FOR ENVIRONMENT, FOREST AND CLIMATE CHANGE
(SHRI BHUPENDER YADAV)
(a) to (d): A statement is laid on the Table of the House.
***STATEMENT REFERRED TO IN REPLY OF PARA (A) TO (D) OF STARRED
QUESTION NO. 140 TO BE ANSWERED ON 09.02.2026 IN LOK SABHA RAISED BY
DR. BACHHAV SHOBHA DINESH REGARDING “SUSTAINABILITY AND
ENVIRONMENTAL COMPLIANCE FOR INDUSTRIES”
(a) to (d) Government follows a multi-pronged strategy to expand sustainability,
environmental compliance, and emissions-reporting requirements. India’s Long-Term Low
Emission Development Strategies (LT-LEDS) provide a sustainable path towards achieving
Net Zero by 2070, involving seven key strategic transitions namely (a) Low carbon
development of electricity systems, (b) developing low-carbon transport system (c) Promoting
adaptation in urban design, energy & material-efficiency in buildings & sustainable
urbanization (d) Promoting innovative low-emission industrial system (e) CO2 removal and
related engineering solution (f) Enhancing Forest and Vegetation cover and (g) Economic and
Financial aspects of low carbon development.
The Securities and Exchange Board of India (SEBI), under the Business Responsibility and
Sustainability Reporting (BRSR), has mandated the disclosure for the top-1,000 listed entities
(by market capitalisation) from 2022-23 onwards, that has nudged adoption of sustainable
practices by corporates.
India is signatory to United Nations Framework Convention on Climate Change (UNFCCC)
and its Paris Agreement. Article 6.2 of the Paris Agreement lays down principle for market-
based mechanisms to enable cross border investment flow, technology transfer and capacity
building for low carbon technologies.
The ‘National Framework for Indian Carbon Market (ICM) i.e. Carbon Credit Trading Scheme
(CCTS) was notified vide S.O. 2825 (E) dated 28th June 2023 and amendment notification
S.O. 5369(E), dated 19th December 2023 under the powers conferred by clause (w) of section
14 of the Energy Conservation (Amendment) Act, 2022. In the compliance mechanism, the
Greenhouse Gas (GHG) Emission Intensity Targets for seven sectors - Aluminum, Cement,
Chlor-Alkali, Pulp & Paper, Petrochemicals, Petroleum refinery and textiles covering 490
obligated entities have been notified by the Government.
All the projects/activities listed in the schedule to the Environmental Impact Assessment (EIA)
Notification, 2006, as amended, require prior Environmental Clearance (EC) for setting up of
new project/activity or expansion of the existing project/activity beyond the thresholds
mentioned in the Notification. These projects/activities are granted EC by the regulatory
authority based on the recommendations of the concerned Expert Appraisal Committees, which
rigorously appraise the projects/activities based on the Environmental Impact Assessments
carried out for such projects, taking into account the impact of the said projects/activities on
the environment. Further, the concerned Expert Appraisal Committees also prescribe suitable
mitigation measures for pollution abatement as well as sustainability measures to be
implemented by the projects/activities, which form a part of the EC conditions. The
projects/activities once granted EC are required to file six monthly compliance reports,
mandatorily through PARIVESH, with regard to the conditions prescribed in the EC. In
addition to the above, projects are governed by the consent mechanism which is implemented
by the Central Pollution Control Board (CPCB), in association with the State Pollution Control
Boards/Pollution Control Committees (SPCBs/SPCCs), under the provisions of the Water
(Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of
Pollution) Act, 1981. Under the consent mechanism, projects are granted Consent To Establish(CTE) and Consent To Operate (CTO) by the respective SPCBs/SPCCs taking into account
various criteria such as siting of the project /activity, the environmental safeguards to be
observed by the project/ activity etc., thereby ensuring sustainability. The compliance to
CTE/CTO conditions are regularly monitored by the respective SPCBs/SPCCs. Recently, the
Ministry has also notified the Environment Audit Rules, 2025 to strengthen the environmental
compliance framework for projects operating under various environmental laws.
****