The Government of India (GoI) has announced greenhouse gas emission intensity targets for additional carbon-intensive sectors under the Carbon Credit Trading Scheme (CCTS). The move expands the compliance mechanism of the Indian carbon market by including petroleum refineries, petrochemicals, textiles, and secondary aluminium. Furthermore, a total of 208 obligated entities across these newly included sectors will now be required to achieve specified emission intensity reduction targets.
Additionally, with this expansion, the Indian carbon market’s compliance mechanism now covers 490 obligated entities across some of India’s most emission-intensive industries. Earlier in October 2025, the GoI had introduced greenhouse gas emission intensity targets for select sectors. These included aluminium, cement, chlor-alkali, and pulp & paper, covering 282 obligated entities.
The CCTS was announced by the Ministry of Power (MoP) in 2023. The programme also called for the establishment of a National Steering Committee, which will regulate and have direct oversight of the Indian carbon market’s operations, which will be led by MoP, the Ministry of Environment, Forestry, and Climate Change, and other ministries will be represented.
