amends emission reduction targets for refineries and textile units

The Centre has updated a key notification, outlining binding targets for greenhouse-gas emissions from two major industries: petroleum refineries and textiles. The revised guidelines now set a new baseline for emissions at seven refineries, while leaving the 2025-26 targets open for revision.

This move comes as the country prepares to phase out the compliance period for these industries, effectively ending the targets for 2025-26.

According to Parth Kumar, Programme Manager, Sustainable Industrialisation Unit, Centre for Science and Environment, "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." The amendment is part of the broader efforts to create a framework that incentivises emission reduction through a market-based mechanism, as outlined in the Carbon Credits Trading Scheme (CCTS), launched in 2023.

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The amendment covers 173 units across three sub-sectors in the textile sector. This will be required to meet the new emission intensity targets. The targets for petroleum refineries, on the other hand, were notified in January.

However, the ministry amended the notification 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.

Industry compliance targets for the 2026-27 period have been upheld, while those for 2025-26 have been scrapped. This decision marks the conclusion of the compliance cycle for these sectors, paving the way for the introduction of new targets. The notification system now aligns with the tonnes of carbon dioxide equivalent (tCO2e) metric.

Which encompasses not only CO2 but also other greenhouse gases based on their warming potential.

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The introduction of GHG emission intensity targets. Or GEI targets, for various sectors aims to bring them under the purview of the country’s domestic carbon market. The Indian Express had reported earlier on the importance of these targets in achieving India’s climate action goals.

With the amendment, the Centre is taking a step towards creating a more strong framework for emission reduction. At the same time, it providing clarity on the targets for the next year.

The amendment has significant implications for the industries involved, as well as for the overall climate action agenda. As the country continues to shows of emission reduction, it is essential to have a clear and predictable framework in place. The updated notification is a positive step towards achieving this goal.