NEW DELHI: The Union government has announced the inclusion of four additional sectors under the amended Greenhouse Gases Emission Reduction Intensity Target Rules, taking the total number of carbon-intensive industries required to comply with the framework to eight.
The updated regulations, titled the Greenhouse Gases Emission Intensity Target (Amendment) Rules, 2025, set specific emission intensity limits for the sectors of Secondary Aluminium, Petroleum Refinery, Petrochemical and Textile.
These rules mandate that industries reduce their greenhouse gas emissions, measured as carbon footprint per unit of output (emission intensity), based on baseline levels from 2023-24.
In its latest amendment, the Ministry of Environment, Forest and Climate Change (MoEFCC) has specified targets for these sectors, requiring reductions in carbon emission intensity by 2026-27 compared to previous years.
The notification also includes a list of industrial units affected – three in the Secondary Aluminium industry, 21 in Petroleum Refinery, 11 in Petrochemicals, and 173 in the Textile sector, which encompasses spinning, processing, fibres and composites.
The greenhouse gas emission intensity targets for these sectors have been calculated for 2025-26 and for the period from January 2026 to March 2026, based on a pro rata base target. Furthermore, new targets for 2026-27 have been established, reflecting the same reduction percentage that would have been applicable for the 2025-26 period.
On June 28, 2023, the Central Government introduced the Carbon Credit Trading Scheme under the Energy Conservation Act of 2001.
Subsequently, on October 8, 2025, it issued the Greenhouse Gases Emission Intensity Target Rules, 2025, which set India’s first legally binding emission reduction targets for carbon-intensive industries.
Following this notification, the MoEFCC designated 282 industrial units across various sectors, including aluminium, cement, pulp and paper, and chlor alkali, to reduce their greenhouse gas emission intensity from the 2023-24 baseline levels.
The rule aligns with India’s commitment under the 2015 Paris Agreement to decrease the emissions intensity of its GDP by 45 per cent by 2030, relative to 2005 levels.
Under the Carbon Credit Trading Scheme, if a carbon-emitting industry exceeds the legal emission limit, it is required to purchase credits from verified projects that reduce, avoid or remove emissions. These include initiatives in renewable energy, energy efficiency, methane capture, carbon capture technology, and afforestation or reforestation.
The Bureau of Energy Efficiency has been appointed as the authority to issue carbon credit certificates to industries, while the Central Pollution Control Board will supervise compliance and impose penalties for non-compliance.