The government expanded the coverage of Greenhouse Gas Emission Intensity (GEI) targets under the Carbon Credit Trading Scheme (CCTS), bringing additional carbon-intensive sectors under the compliance mechanism of the Indian Carbon Market (ICM). The notification, issued on 13 January 2026, now includes Petroleum Refineries, Petrochemicals, Textiles, and Secondary Aluminium, according to a press release from the Press Information Bureau (PIB).
208 New Obligated Entities Added
With this expansion, 208 obligated entities across the newly included sectors must meet specified GEI reduction targets. This brings the overall number of obligated entities under the ICM’s compliance mechanism to 490, covering India’s most emission-intensive industries. Previously, in October 2025, the Government notified GEI targets for the Aluminium, Cement, Chlor-Alkali, and Pulp & Paper sectors. These sectors together encompassed 282 obligated entities.
Carbon Credit Trading Scheme: Framework and Objectives
Introduced in 2023, the CCTS provides the overall framework for India’s carbon market. Its primary goal is to reduce or avoid greenhouse gas emissions across various sectors by pricing emissions through a carbon credit certificate trading mechanism.
The scheme operates through two mechanisms:
*Compliance Mechanism: Obligated entities in emission-intensive sectors must meet assigned GEI targets. Entities that exceed their targets earn Carbon Credit Certificates.
*Offset Mechanism: These certificates can then be traded with entities unable to meet their targets, creating a market-driven incentive for emissions reduction.
Aligning Industrial Growth with Climate Goals
The expansion of GEI targets reflects years of sustained engagement with industry, rigorous technical assessment, and coordinated efforts among multiple stakeholders. As chinimandi.com reports, deeper sectoral coverage and a maturing compliance mechanism are strengthening the Indian Carbon Market. This positions it to align industrial growth with India’s long-term climate goals and net-zero pathway.
