GEI Targets for 208 Additional Entities – CCTS Expands to 490 Obligated Entities
Introduction: A Milestone for India's Carbon Market
On January 13, 2026, the Ministry of Environment, Forest and Climate Change (MoEFCC) issued a landmark notification that fundamentally expanded the scope of India's Carbon Credit Trading Scheme (CCTS). The notification brought Petroleum Refineries, Petrochemicals, Textiles, and Secondary Aluminium under the compliance mechanism of the Indian Carbon Market (ICM).
This expansion added 208 obligated entities to the compliance mechanism, bringing the total number of obligated entities under the CCTS to 490. This represents one of the most significant expansions of India's carbon market since its inception, transforming the CCTS from a pilot framework into a comprehensive compliance mechanism covering the country's most emission-intensive industries.
The notification, issued on January 13, 2026, marked the culmination of years of sustained engagement with industry, rigorous technical assessment, and coordinated efforts across institutions and stakeholders. As the government noted, "this progress reflects years of sustained engagement with industry, rigorous technical assessment, and coordinated efforts across institutions and stakeholders."
This guide provides a comprehensive analysis of the GEI targets expansion, explaining what the notification means, who is affected, what the targets are, and what newly obligated entities must do to prepare.
The January 13, 2026 Notification: What Changed
The Notification
The MoEFCC issued the notification on January 13, 2026, bringing four additional carbon-intensive sectors under the CCTS compliance mechanism. The notification amended the Greenhouse Gases Emission Intensity Target Rules, 2025, to include these new sectors.
The Four New Sectors
| Sector | Type of Entities |
|---|---|
| Petroleum Refineries | Oil refineries processing crude oil into petroleum products |
| Petrochemicals | Facilities producing chemicals from petroleum and natural gas |
| Textiles | Textile manufacturing units including spinning, processing, and composite mills |
| Secondary Aluminium | Aluminium recycling and secondary production facilities |
The Number of Entities
A total of 208 obligated entities across these sectors were brought under the compliance mechanism. These entities are now required to meet specified emission intensity reduction targets.
The Impact
With this expansion, the compliance mechanism of the ICM now covers 490 obligated entities across India's most emission-intensive industries. This represents a 73% increase from the initial coverage of 282 entities.
The Four New Sectors: Petroleum Refineries, Petrochemicals, Textiles, and Secondary Aluminium
Petroleum Refineries
Petroleum refineries are among India's most energy-intensive and emission-intensive industries. They process crude oil into various petroleum products including petrol, diesel, kerosene, and other hydrocarbons.
Emission Sources:
- Combustion of fossil fuels for process heat
- Chemical processes in refining
- Fugitive emissions from storage and handling
Key Players:
- Indian Oil Corporation
- Reliance Industries
- BPCL
- HPCL
- Nayara Energy
Petrochemicals
Petrochemical facilities produce chemicals from petroleum and natural gas, including plastics, synthetic fibres, and other industrial chemicals.
Emission Sources:
- Energy-intensive chemical processes
- Combustion for process heat
- Chemical reactions with high carbon intensity
Key Players:
- Reliance Industries
- GAIL
- ONGC Petro additions
- Various downstream petrochemical producers
Textiles
The textile sector is one of India's largest manufacturing sectors and a major exporter. It includes spinning, weaving, processing, dyeing, and finishing operations.
Emission Sources:
- Energy consumption in spinning and weaving
- Heat generation for dyeing and processing
- Chemical use in processing
Key Players:
- Arvind Ltd
- Vardhman Textiles
- Welspun India
- Raymond Ltd
- Many medium and small textile units
Secondary Aluminium
Secondary aluminium refers to aluminium produced from recycled scrap rather than from bauxite ore. While less emission-intensive than primary aluminium production, it remains a significant source of emissions.
Emission Sources:
- Energy consumption in melting and refining
- Chemical processes in recycling
- Transport and handling of scrap
Key Players:
- Hindalco (recycling operations)
- Vedanta (recycling operations)
- Various secondary aluminium producers
The 208 Obligated Entities: Who Is Affected
Sector-Wise Breakdown
| Sector | Estimated Number of Entities |
|---|---|
| Petroleum Refineries | ~25-30 |
| Petrochemicals | ~30-40 |
| Textiles | ~120-140 |
| Secondary Aluminium | ~15-20 |
| Total | 208 |
What This Means for Each Sector
For Petroleum Refineries:
- Each refinery has been assigned a baseline emission intensity based on its 2023-24 performance
- Targets must be achieved for the compliance years 2025-26 and 2026-27
- Entities that outperform targets can earn Carbon Credit Certificates
For Petrochemicals:
- Emission intensity targets set at sub-sector level
- Companies must monitor and report emissions
- Non-compliance may require purchase of Carbon Credit Certificates
For Textiles:
- 173 textile units were included in this expansion
- Targets cover spinning, processing, and composite mills
- This represents the first time the textile sector has been brought under a carbon compliance regime
For Secondary Aluminium:
- Recycling facilities now subject to emission intensity targets
- Must monitor both direct and indirect emissions
The Geographic Spread
The 208 entities are distributed across India, with concentrations in:
- Gujarat (refineries, petrochemicals, textiles)
- Maharashtra (textiles, petrochemicals)
- Tamil Nadu (textiles, refineries)
- West Bengal (textiles)
- Uttar Pradesh (textiles, petrochemicals)
From 282 to 490: The Expansion Timeline
Phase 1: October 2025
The Government of India first notified GEI targets in October 2025 for:
- Aluminium
- Cement
- Chlor-Alkali
- Pulp and Paper
These sectors covered 282 obligated entities.
Phase 2: January 13, 2026
The notification brought:
- Petroleum Refineries
- Petrochemicals
- Textiles
- Secondary Aluminium
These sectors added 208 obligated entities.
Current Coverage
The compliance mechanism now covers 490 obligated entities across India's most emission-intensive industries.
Future Expansion
Once all nine energy-intensive sectors are notified, around 740 entities will have legally binding emission intensity targets. The remaining sectors are:
- Iron and Steel (255 units, draft notification issued June 2026)
- Fertilizer (pending)
Emission Intensity Targets: What the 208 Entities Must Achieve
The Target Framework
Each obligated entity has been assigned a plant-specific emission intensity target expressed as tonnes of CO₂ equivalent per tonne of equivalent product.
The Reduction Ranges
For the newly added sectors, the required reduction ranges vary based on the sector and baseline intensity:
| Sector | Reduction Range (Indicative) |
|---|---|
| Petroleum Refineries | 3-8% (estimated) |
| Petrochemicals | 2-7% (estimated) |
| Textiles | 3-7% |
| Secondary Aluminium | 2-6% (estimated) |
Note: Exact targets are plant-specific and depend on 2023-24 baseline intensity.
The Back-Loaded Structure
The targets are back-loaded: about 40% of the required reduction must be achieved in 2025–26 and the remaining 60% in 2026–27.
What This Means
- 2025-26: A transition year with moderate targets
- 2026-27: Significant pressure to achieve deeper reductions
The Compliance Years: 2025-26 and 2026-27
The Compliance Period
Covered entities have legally binding GHG emission intensity targets for the compliance years 2025–26 and 2026–27.
Retroactive Application
Compliance obligations apply retroactively, with the first compliance date on July 31, 2026 for the 2025-26 compliance year.
Key Dates
| Date | Event |
|---|---|
| April 1, 2025 | Compliance obligations come into force for seven sectors |
| July 31, 2026 | First compliance deadline (Form A filing) |
| March 31, 2027 | End of 2026-27 compliance year |
| July 31, 2027 | Second compliance deadline |
The Compliance Cycle
| Step | Description | Timeline |
|---|---|---|
| 1. Monitoring | Track emissions and production data | Throughout compliance year |
| 2. Form A Filing | Submit Performance Assessment Document | July 31, 2026 |
| 3. Verification | Submit GHG emissions report and verification | Within 2 months of Form A filing |
| 4. Assessment | BEE assesses compliance | Following verification |
| 5. Credit Trading | Trade CCCs on Power Exchanges | Starting mid-2026 |
The Baseline Year: 2023-24 and Its Significance
The Baseline
Covered entities now have legally binding GHG emission intensity targets using fiscal year 2023–24 as the baseline.
Why 2023-24 Matters
- Establishes the reference point against which emissions reductions are measured
- Entities must calculate their 2023-24 emission intensity accurately
- The baseline data must be verifiable and auditable
How to Calculate Baseline Intensity
Emission Intensity = Total GHG Emissions (tCO₂e) / Total Output (units)
Example Calculation
A textile mill produces 10,000 tonnes of fabric and emits 80,000 tonnes of CO₂e in 2023-24.
Emission Intensity = 80,000 / 10,000 = 8.0 tCO₂e per tonne of fabric
What This Means for Newly Obligated Entities
Entities must:
- Gather accurate 2023-24 production and emissions data
- Verify the data before submission
- Use the data to calculate their baseline emission intensity
- Compare baseline to their notified target
The Compliance Mechanism: How It Works
The Intensity-Based System
The CCTS operates as an intensity-based baseline-and-credit system, with targets defined as tonnes of CO₂ equivalent per unit of product output.
The Two Pathways
| Pathway | Description |
|---|---|
| In-House Reduction | Reduce emissions through energy efficiency, fuel switching, process optimization, and renewable energy adoption |
| Credit Procurement | Purchase Carbon Credit Certificates from entities with surplus credits |
The Reward System
Entities that outperform their targets are eligible to receive Carbon Credit Certificates (CCCs), which they can trade with obligated entities unable to meet their targets.
The Penalty System
Entities that fall short of their targets must purchase and surrender an equivalent number of CCCs.
The Scope of Emissions
The scheme applies a gate-to-gate approach covering:
- Scope 1: Direct emissions from fuel combustion and industrial processes
- Scope 2: Indirect emissions from electricity and heat consumption
- Some Scope 3: Import and export of intermediary products
The system initially covers CO₂ and perfluorocarbons (PFCs).
Carbon Credit Certificates: Earning and Trading
What Are CCCs?
Carbon Credit Certificates (CCCs) are tradable units representing one tonne of CO₂ equivalent reduced, avoided, or removed.
How to Earn CCCs
Entities that outperform their targets are eligible to receive CCCs. The number of CCCs earned is proportional to the excess reduction achieved.
How to Trade CCCs
- CCCs can be traded on India's power exchanges (IEX, PXIL)
- Trading is expected to launch by mid-2026
- Entities must register with the Registry and Power Exchanges to trade
The Value of CCCs
- CCCs can be banked for future compliance
- CCCs can be sold to entities that fall short of their targets
- CCCs can be used to meet own compliance obligations
The Economic Logic
| Scenario | Outcome |
|---|---|
| Outperform target | Earn CCCs, generate revenue, gain competitive advantage |
| Meet target exactly | No surplus or deficit, break even |
| Fall short of target | Must buy CCCs, incur costs, risk penalties |
The Transition from PAT to CCTS
What Was PAT?
The Perform, Achieve and Trade (PAT) scheme was India's mandatory energy efficiency program covering more than 1,000 entities from 13 energy-intensive sectors.
PAT vs. CCTS
| Aspect | PAT | CCTS |
|---|---|---|
| Focus | Energy efficiency | GHG emissions |
| Metric | Tonnes of oil equivalent | Tonnes of CO₂ equivalent |
| Scope | Energy consumption | Direct and indirect emissions |
| Compliance | Energy intensity targets | Emission intensity targets |
Why the Transition Matters
While PAT focused on energy efficiency, the CCTS directly targets GHG emissions, aligning more closely with India's climate commitments under the Paris Agreement.
The Gradual Transition
The CCTS compliance mechanism marks the start of a gradual transition from India's existing PAT program to the CCTS compliance mechanism.
What This Means for Entities
- Entities must now measure emissions, not just energy consumption
- The scope of compliance has expanded significantly
- New skills and systems are required for emissions monitoring and reporting
The Institutional Framework: BEE, Grid Controller, and CERC
The Three Key Institutions
| Institution | Role |
|---|---|
| Bureau of Energy Efficiency (BEE) | Administrator — develops procedures, registers participants, monitors compliance |
| Grid Controller of India | Registry — maintains electronic accounts, verifies transfers, records ownership |
| Central Electricity Regulatory Commission (CERC) | Regulator — sets price bands, oversees market operations, intervenes in abnormal price movements |
The Indian Carbon Market Portal
On March 21, 2026, Power Minister Manohar Lal Khattar launched the Indian Carbon Market Portal at the Prakriti 2026 International Conference on Carbon Markets in New Delhi. The portal serves as the central digital backbone of the Indian Carbon Market, enabling end-to-end processes from entity registration to the issuance of CCCs, including validation, verification, and accreditation of third-party monitoring, reporting, and verification (MRV) bodies.
Portal Features
- Entity registration for both obligated and non-obligated entities
- CCC issuance and tracking
- Validation and verification of emission reductions
- Accreditation of MRV bodies
- Integration with power exchanges for trading
Article 6 Provisions
The platform includes provisions for interacting with international carbon markets under Article 6 of the Paris Agreement, allowing project developers to register activities intended for cross-border crediting.
The Indian Carbon Market Portal: The Digital Backbone
Launch and Purpose
The Indian Carbon Market Portal was launched on March 21, 2026, serving as the central digital backbone of the Indian Carbon Market. It enables end-to-end processes from entity registration to the issuance of CCCs.
Key Features
| Feature | Description |
|---|---|
| Entity Registration | Register obligated and non-obligated entities |
| CCC Issuance | Track and issue Carbon Credit Certificates |
| Validation and Verification | Manage third-party MRV processes |
| MRV Accreditation | Accredit monitoring, reporting, and verification bodies |
| Trading Integration | Connect with power exchanges for CCC trading |
Who Must Register
All participants in the Indian Carbon Market must register on the portal, including:
- Obligated entities (490+ across nine sectors)
- Non-obligated entities (project developers)
- Validation and Verification Bodies (VVBs)
- Brokers and traders
The Registration Process
| Step | Description |
|---|---|
| 1 | Visit www.indiancarbonmarket.gov.in |
| 2 | Create an account and select entity type |
| 3 | Complete KYC and submit required documents |
| 4 | Submit for verification (2-5 working days) |
| 5 | Account activation upon verification |
| 6 | Open Registry account with Grid Controller of India |
| 7 | Open Trading account with Power Exchange |
The Remaining Sectors: Iron and Steel and Fertilizer
Current Status
Final targets for the remaining two covered sectors — iron and steel and fertilizer — are still pending.
Iron and Steel
| Aspect | Details |
|---|---|
| Status | Draft notification issued June 26, 2026 |
| Number of Units | 255 units |
| Baseline Year | 2023-24 |
| Compliance Year | 2026-27 |
| Target Range | 2.1% – 9.3% (median ~5.5%) |
| Combined Emissions | 358.6 million tonnes CO₂e |
Fertilizer
| Aspect | Details |
|---|---|
| Status | Pending |
| Number of Units | 35+ (estimated) |
| Baseline Year | 2023-24 (expected) |
| Compliance Year | 2026-27 (expected) |
Future Coverage
Once all nine energy-intensive sectors are notified, around 740 entities will have legally binding emission intensity targets for the compliance years 2025-26 and 2026-27.
Emissions Coverage
The CCTS compliance mechanism is set to initially cover over 700 million tonnes of CO₂e, placing India among the world's largest emissions trading systems.
Implications for Newly Obligated Entities
Immediate Actions
| Action | Timeline |
|---|---|
| Confirm Obligated Status | Check if your facility is on the notified list |
| Calculate Baseline | Gather 2023-24 data and calculate emission intensity |
| Understand Target | Review notified target for your facility |
| Assess Gap | Calculate difference between baseline and target |
| Develop Strategy | Plan for in-house reduction or credit procurement |
| Register on Portal | Complete ICM Portal registration |
| File Form A | Submit by July 31, 2026 |
Common Challenges
| Challenge | Solution |
|---|---|
| Incomplete 2023-24 data | Reconstruct using best available estimates |
| Unclear target interpretation | Consult with BEE or a carbon advisory firm |
| Limited reduction options | Consider credit procurement as a pathway |
| Portal registration complexity | Seek professional assistance |
The Cost of Delay
| Delay | Consequence |
|---|---|
| Late Form A filing | Non-compliance penalties |
| Failure to meet target | Must purchase CCCs at potentially higher prices |
| Non-compliance | Environmental Compensation penalties (2× average market price) |
| Reputational damage | Market perception as an efficiency laggard |
How Carboned.in Can Help
At Carboned.in, we help newly obligated entities navigate the CCTS compliance process with clarity and confidence.
Our Services
| Service | What We Do |
|---|---|
| Obligation Assessment | Confirm whether your entity is covered |
| Baseline Calculation | Calculate your 2023-24 emission intensity |
| Target Interpretation | Understand your notified target |
| Gap Analysis | Assess your compliance position |
| Compliance Strategy | Develop a cost-effective plan to meet your target |
| Portal Registration | Guide you through ICM Portal registration |
| Form A Filing | Assist with documentation and submission |
| Credit Procurement | Help you buy CCCs at the best price |
Why Choose Carboned.in?
| Reason | Why It Matters |
|---|---|
| Legal Expertise | Led by Siddharth Gupta, Advocate, Calcutta High Court |
| Regulatory Knowledge | Deep understanding of CCTS, BEE, and MoEFCC requirements |
| Sector Experience | Knowledge of petroleum refining, petrochemicals, textiles, and aluminium |
| End-to-End Support | From obligation assessment to compliance |
Your first consultation is completely free. No obligation. Just honest advice.
Conclusion
The January 13, 2026 notification marked a significant milestone in India's carbon market development. With 490 obligated entities now covered across seven sectors, the CCTS has transformed from a pilot framework into a comprehensive compliance mechanism.
Key Takeaways
| Aspect | What You Need to Know |
|---|---|
| Notification Date | January 13, 2026 |
| New Sectors | Petroleum Refineries, Petrochemicals, Textiles, Secondary Aluminium |
| Entities Added | 208 |
| Total Covered | 490 |
| Baseline Year | 2023-24 |
| Compliance Years | 2025-26 and 2026-27 |
| First Deadline | July 31, 2026 |
| Remaining Sectors | Iron and Steel, Fertilizer |
| Future Coverage | ~740 entities |
The Choice Is Yours
| Option | Outcome |
|---|---|
| Act now | Assess your position, reduce emissions, earn credits, gain competitive advantage |
| Wait and see | Face penalties, higher costs, lost market access, reputational damage |
How Carboned.in Can Help
At Carboned.in, we help newly obligated entities navigate the CCTS expansion with clarity and confidence.
- Obligation Assessment: Confirm your coverage
- Baseline Calculation: Know your starting point
- Target Interpretation: Understand your obligations
- Gap Analysis: Assess your position
- Compliance Strategy: Develop a plan
- Portal Registration: Guide you through the process
- Form A Filing: Ensure timely compliance
- Credit Procurement: Buy CCCs at the best price
Your first consultation is completely free. No obligation. Just honest advice.
How Carboned.in can help
Our team covers every dimension of India's carbon market — pick the service that matches where you are.
Frequently Asked Questions
When were the GEI targets for the 208 additional entities notified?+
January 13, 2026.
Which sectors were added?+
Petroleum refineries, petrochemicals, textiles, and secondary aluminium.
How many entities were added?+
208 obligated entities.
How many entities are now covered?+
490 obligated entities.
What is the baseline year?+
Fiscal year 2023-24.
What are the compliance years?+
2025-26 and 2026-27.
When is the first compliance deadline?+
July 31, 2026.
What is the Indian Carbon Market Portal?+
The central digital backbone launched on March 21, 2026.
What are Carbon Credit Certificates?+
Tradable units representing one tonne of CO₂ equivalent reduced, avoided, or removed.
How many entities will be covered eventually?+
Around 740 entities once all nine sectors are notified.
How can Carboned.in help?+
We provide obligation assessment, baseline calculation, target interpretation, gap analysis, compliance strategy, portal registration, Form A filing, and credit procurement.
Siddharth Gupta is the founder of Carboned.in and specialist counsel for India's carbon compliance framework — advising obligated entities, project developers, and buyers on CCTS, CR-I registration, and credit transactions.
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