Centre notifies GEI targets for four more sectors under the carbon credit trading scheme.

New Delhi, January 22, 2026: The Government of India has notified Greenhouse Gas Emission Intensity (GEI) targets for additional carbon-intensive sectors under the Carbon Credit Trading Scheme (CCTS), expanding the compliance framework of the Indian Carbon Market (ICM).

According to a notification issued on January 13, 2026, four new sectors—petroleum refineries, petrochemicals, textiles, and secondary aluminium—have been brought under the compliance mechanism of the ICM.

With this expansion, a total of 208 obligated entities in these sectors will now be required to meet specified emission intensity reduction targets. The compliance mechanism of the ICM now covers 490 obligated entities across India’s most emission-intensive industries.

Earlier, in October 2025, the Government had notified GEI targets for the aluminium, cement, chlor-alkali, and pulp and paper sectors, covering 282 obligated entities.

GEI’s carbon credit trading scheme framework:

The CCTS, notified in 2023, provides a comprehensive framework for the functioning of the Indian Carbon Market.

The scheme aims to reduce or avoid greenhouse gas emissions from various sectors of the Indian economy by pricing emissions through a carbon credit certificate trading mechanism.

Emission-intensive industries are designated as obligated entities and are required to achieve prescribed GEI targets. Entities that outperform their targets become eligible for carbon credit certificates, which can be traded.

This mechanism allows the generation of carbon credits through verified emission reduction projects, supporting broader climate action beyond obligated sectors.

Under the compliance mechanism, carbon credit certificates offer flexibility by enabling entities that exceed targets to trade credits with those that fall short, thereby encouraging efficient emission reduction across the industrial ecosystem.

Strengthening India’s climate action:

The government’s move reflects sustained engagement with industries, detailed technical assessment, and coordinated institutional efforts.

With expanded sectoral coverage and a maturing compliance mechanism, the Indian Carbon Market is expected to play a significant role in aligning industrial growth with India’s long-term climate priorities, including its net-zero target.

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EOM.