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ESG Update –  Environment Ministry notifies GEI Target (Amendment) Rules, 2025

ESG Update –  Environment Ministry notifies GEI Target (Amendment) Rules, 2025

The Ministry of Environment, Forest and Climate Change (MOEFCC) has notified the Greenhouse Gases Emission Intensity Target (Amendment) Rules, 2025. Under the Amendment Rules, four more sectors (petroleum refinery, petrochemicals, textiles and secondary aluminium) have been brought within the framework under Schedule 2, with sector-specific emission reduction targets to be achieved by 2026-27 against the 2023-24 baseline.

The Amendment Rules, notified by the MoEFCC on 13 January 2026, makes it mandatory for as many as 208 industrial units (3 secondary aluminium units, 21 petroleum refineries, 11 petrochemical units and 173 textile units) spread across the country to reduce GHG emissions per unit of product  with effect from 2025-26.

These sectors have been included in addition to the four high emissions sectors (aluminium, cement, chlor alkali, paper and pulp) which were notified on 09 October 2025 (listed now under the first schedule pursuant to the Amendment rules) under the compliance mechanism of the Indian Carbon Market (ICM). With this expansion, the compliance mechanism of the ICM now covers 490 obligated entities across India’s most emission-intensive industries.