Carbon Credit Trading Scheme (CCTS) Expanded to Include 208 Additional Industrial Units

Key facts

• The Government of India notified Greenhouse Gas Emission Intensity (GEI) targets for 208 additional carbon-intensive industrial units on 13 January.
• The notification brings petroleum refineries, petrochemicals, textiles, and secondary aluminium under the compliance mechanism of the Carbon Credit Trading Scheme (CCTS).
• The expansion increases the total number of obligated entities covered under the Indian carbon market framework to 490.
• Previously, in October 2025, the government notified GEI targets for 282 entities in the aluminium, cement, chlor-alkali, and pulp & paper sectors.
• The CCTS operates through two routes: a compliance mechanism for designated industries and an offset mechanism for voluntary projects by non-obligated entities.
• Under the compliance mechanism, entities that exceed their prescribed GEI reduction targets are awarded Carbon Credit Certificates, which can be sold to entities that fall short of their goals.
• The offset mechanism allows non-obligated entities to earn certificates through projects in renewables, energy efficiency, and afforestation.
• The initiative is designed to support India’s national commitment to achieve net-zero emissions by 2070.