The Government of India has announced Greenhouse Gas Emission Intensity (GEI) targets for more 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 system of the Indian Carbon Market (ICM), according to a statement released by the Press Information Bureau.
With this move, 208 companies operating in these sectors will now be required to meet fixed emission reduction targets. The expansion increases the total number of companies covered under the ICM’s compliance framework to 490, covering some of the most polluting industries in the country. Earlier, in October 2025, GEI targets were notified for 282 companies in the aluminium, cement, chlor-alkali, and pulp and paper sectors.
The Carbon Credit Trading Scheme, notified in 2023, provides the overall framework for the Indian Carbon Market. The scheme aims to cut or prevent greenhouse gas emissions across different sectors of the economy by assigning a value to emissions through a system of carbon credit trading.
The scheme functions through two routes: a compliance system and an offset system. Under the compliance system, selected high-emission industries, known as obligated entities, must meet assigned emission intensity targets. Companies that perform better than their targets can earn carbon credit certificates, which can be sold to companies that fall short of their requirements.
The government said the expansion reflects years of continuous engagement with industry, detailed technical reviews and coordinated efforts among institutions and stakeholders. As more sectors are brought under the system and the compliance process becomes stronger, the Indian Carbon Market is expected to play a key role in balancing industrial growth with India’s long-term climate goals and its path toward net-zero emissions.
