The Indian government has significantly expanded its emissions reduction program. Just three months after targeting four high-emission sectors, authorities have now added four more industries to the list.
New Sectors Under Emission Rules
The environment ministry notified new rules last week. These regulations bring petroleum refinery, petrochemicals, textiles and secondary aluminium under the greenhouse gas emissions intensity reduction regime. This expansion follows the earlier inclusion of aluminium, cement, chlor-alkali and pulp & paper sectors.
Strict Compliance Requirements
The rules make emission reduction mandatory for 208 industrial units across India. Starting from 2025-26, these facilities must reduce their greenhouse gas emissions per unit of product. The government calls this measurement "emission intensity."
Units that fail to comply will face financial penalties. The regulations operate under the Carbon Credit Trading Scheme established in 2023. Their official name is the Greenhouse Gases Emission Intensity Target (Amendment) Rules.
Which Units Are Affected?
The 208 industrial units include diverse operations. Textile units dominate the list with 173 facilities. These cover spinning, processing, fibre and composite sub-sectors.
The petroleum sector contributes 21 refineries. Petrochemical operations add 11 more units. Secondary aluminium production rounds out the list with three facilities.
Major public and private sector companies fall under these rules. Public enterprises like ONGC, Bharat Petroleum, Hindustan Petroleum, Indian Oil and Numaligarh Refineries must comply. Private giant Reliance Industries also faces these requirements through its petroleum refinery and petrochemical operations.
Specific Reduction Targets
The government has set clear reduction goals. For the 2025-26 period, targets calculate on a pro-rata basis. This approach considers the remaining months of the current financial year.
By 2026-27, overall reductions should reach 3-7% compared to 2023-24 levels. These targets use tonnes of carbon dioxide equivalent as their measurement unit.
Penalty Structure for Non-Compliance
Industrial units face serious consequences for missing targets. The Central Pollution Control Board will impose penalties called "environmental compensation." This happens when facilities fail to meet their Greenhouse Gases Emission Intensity targets.
Penalties also apply if units don't submit enough carbon credit certificates. These certificates must cover any shortfall in compliance.
The penalty amount equals twice the average carbon credit certificate price. Authorities use trading cycle prices from the relevant compliance year. Companies must pay penalties within 90 days of receiving the imposition order.
Broader Climate Goals
These emission rules support India's larger climate commitments. The targets align with the country's 2070 "net zero" emission goal. They also help meet Nationally Determined Contribution targets under international climate agreements.
The program aims to reduce, remove or avoid greenhouse gas emissions. This represents a significant step in India's climate action strategy. The government continues expanding its regulatory approach to industrial emissions.
