Archive · 22 Jan 2026
India Expands Carbon Credit Scheme to More Industries
The Indian government has announced new rules to reduce greenhouse gas emissions from more industries.
They have added petroleum refineries, petrochemicals, textiles, and secondary aluminium to a system where these industries must meet certain emission targets.
If they do better than the targets, they can earn carbon credits, which they can sell to other companies that are struggling to meet their targets.
This system is part of India's plan to reduce emissions and reach its goal of net-zero emissions by 2070.
The government first started this system in 2023 and has been adding more industries to it over time.
Now, a total of 490 companies across various sectors must follow these emission rules.
If a company doesn't meet the targets, it can buy carbon credits from others or face penalties.
The Indian government has notified Greenhouse Gas Emission Intensity (GEI) targets for additional carbon-intensive sectors under the Carbon Credit Trading Scheme (CCTS).
The notification, issued on January 13, 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 CCTS, notified by the government in 2023, aims to reduce or avoid greenhouse gas emissions by pricing emissions through a carbon credit certificate trading mechanism.
- Who
- Government of India, Ministry of Environment, Forest and Climate Change
- What
- Notified Greenhouse Gas Emission Intensity (GEI) targets for additional carbon-intensive sectors under the Carbon Credit Trading Scheme (CCTS)
- When
- Notification issued on January 13, 2026
- Where
- India
- Why
- To reduce greenhouse gas emissions and align industrial growth with India's long-term climate objectives and net-zero pathway
- Date of Notification
- January 13, 2026
- New Sectors Added
- Petroleum Refineries, Petrochemicals, Textiles, Secondary Aluminium
- Total Obligated Entities Now
- 490
- Initial Obligated Entities
- 282 (April 2025)
- Carbon Credit Trading Scheme (CCTS) Notification Year
- 2023
- Mechanisms of CCTS
- Compliance Mechanism, Offset Mechanism
- Objective of CCTS
- Reduce or avoid greenhouse gas emissions by pricing emissions through carbon credit certificate trading
- India's Net-Zero Target
- 2070
- Number of Units in New Sectors
- 173 textile units, 21 petroleum refineries, 11 petrochemical units, 3 secondary aluminium plants
- Penalty for Non-Compliance
- Environmental Compensation equal to twice the average price of carbon credit certificates
Sources
NITI Aayog suggests setting up of national agency to implement green transition for MSMEs
Greenhouse gas emission intensity targets notified for 208 more carbon-intensive industries
Govt notifies Greenhouse Gas Emission Intensity targets for 208 more carbon-intensive industries
Greenhouse gas emission intensity targets notified for 208 more carbon-intensive industries
Renewables drive next grid build: 40,000 ckm of inter-state lines to come up to evacuate green power
Draft National Electricity Policy 2026 bets big on N-Power, tweaks tariffs and cross-subsidy rules
Refineries, textiles, petrochemicals join India’s carbon compliance scheme
