The government has notified greenhouse gas emission intensity (GEI) targets for 208 additional carbon-intensive industries under the Carbon Credit Trading Scheme (CCTS), the environment ministry said on Thursday.
The notification, issued on January 13, brings sectors such as petroleum refineries, petrochemicals, textiles, and secondary aluminium under the compliance mechanism of the Indian Carbon Market (ICM). With this expansion, 490 obligated entities across India’s most emission-intensive industries are now required to meet specific emission reduction targets.
Previously, GEI targets were notified in October 2025 for 282 entities in the aluminium, cement, chlor-alkali, and pulp and paper sectors. The CCTS, launched in 2023, provides an overarching framework for the Indian Carbon Market, aiming to reduce or avoid greenhouse gas emissions through a carbon credit trading mechanism.
Under the scheme, the compliance mechanism mandates that emission-intensive industries meet assigned GEI targets. Entities that exceed their targets are eligible to receive carbon credit certificates, which they may trade with entities unable to meet their obligations.
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“The progress reflects years of sustained engagement with industry, rigorous technical assessment, and coordinated efforts across institutions and stakeholders,” the ministry said. “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.”
The expansion covers industries responsible for a significant share of national emissions. By integrating these additional sectors, the government seeks to ensure that India’s industrial development aligns with global commitments on climate change, including its net-zero target for 2070.
Experts note that carbon trading through the ICM offers dual benefits: incentivising industries to reduce emissions while creating a market-based mechanism to offset unavoidable emissions. The move is expected to accelerate investment in cleaner technologies, improve efficiency, and support sustainable industrial practices across the country.
With this latest notification, India’s carbon market is now among the world’s largest compliance-based schemes in emerging economies, providing both regulatory certainty and a market-driven approach to achieving climate targets.
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