India Expands Carbon Credit Trading Scheme As 208 More Emission-Intensive Entities Come Under Compliance
The Government has notified Greenhouse Gas Emission Intensity targets for 208 additional carbon-intensive industries under the Carbon Credit Trading Scheme.
The notification, issued on 13 January 2026, brings petroleum refineries, petrochemicals, textiles and secondary aluminium sectors under the compliance mechanism of the Indian Carbon Market.
With the latest notification, 208 obligated entities across these sectors will be required to meet specified emission intensity reduction targets. The total number of obligated entities covered under the compliance mechanism of the Indian Carbon Market has now increased to 490.
Earlier, in October 2025, Greenhouse Gas Emission Intensity targets were notified for aluminium, cement, chlor-alkali, and pulp and paper sectors, covering 282 obligated entities.
The Carbon Credit Trading Scheme, notified in 2023, provides the framework for the functioning of the Indian Carbon Market. The scheme aims to reduce or avoid greenhouse gas emissions by pricing emissions through a carbon credit certificate trading mechanism.
Under the compliance mechanism, emission-intensive industries designated as obligated entities are required to meet assigned emission intensity targets. Entities that outperform their targets are eligible to receive carbon credit certificates, which can be traded with entities that are unable to meet their targets.
The expansion of sectoral coverage strengthens the compliance mechanism of the Indian Carbon Market and aligns industrial activity with India’s long-term climate objectives and net-zero pathway.
