The Centre has amended a notification setting legally binding greenhouse-gas (GHG) emission-intensity reduction targets for petroleum refineries and the textile sector. The amendment revises the baseline emission figures for at least seven refineries and leaves the targets for 2025–26 blank, ostensibly due to end of the compliance period.

The Ministry of Environment, Forest and Climate Change has introduced GHG emission intensity targets, or GEI targets, for various sectors to bring them under the purview of the country’s domestic carbon market, as part of the Carbon Credits Trading Scheme (CCTS).

The targets for petroleum refineries and the textile sector were notified in January. However, the ministry amended the notification concerning these two sectors on September 22, with modifications in the baseline emission intensities—reference level against which future performance is measured—of refineries of Indian Oil across Digboi, Gujarat, Guwahati, Haldia, Mathura, Panipat, and Paradeep, and corresponding changes in the emission intensity reduction targets, a comparison of the January and September notifications shows.

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The amendment has retained only the 2026-27 year compliance targets, while removing the 2025-26 year targets.

The amendment covers 21 petroleum refineries of Reliance Industries Ltd, Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, Chennai Petroleum Corporation, Hindustan Petroleum Corporation Ltd, Mangalore Refinery and Petrochemicals Ltd, Nayara Energy, and Numaligarh Refineries Ltd. In the textile sector, it covers 173 units across three sub-sectors.

The notification defined targets in terms of tonnes of carbon dioxide equivalent (tCO2e), which is used to measure the impact of all greenhouse gases and not just CO2, based on their warming potential.

Carbon Credits Trading Scheme

The CCTS was launched in 2023 to create a framework that incentivises emission reduction through a market-based mechanism and to help achieve India’s climate action goals.

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Each obligated industry is assigned a GEI target based on emissions per unit of output. Industries that meet or outperform their targets earn carbon credit certificates, which can be sold to industries that are falling short. Industries that do not comply must pay compensation equal to twice the average carbon credit traded price.

GEI is the amount of greenhouse gases emitted per unit of product output, such as the quantum of gases released while producing products across sectors.

‘Predictable timeline, stable targets important’

Parth Kumar, Programme Manager, Sustainable Industrialisation Unit, Centre for Science and Environment, said that while updating data is important for accuracy, delays in notifying targets and frequent changes in compliance requirements can create uncertainty for industry and the market itself.

“A predictable timeline with stable targets is important for companies to plan investments and ensure that the intended emission reductions are achieved in the stipulated timeframe,” he told .

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Heavy industries and core manufacturing sectors, where it is hard to reduce emissions, have been covered under these targets. So far, the Centre has set targets for aluminium, cement, chlor-alkali, pulp and paper, petroleum refineries, and textiles. A revised draft of targets for iron and steel is under consideration.