The Centre has issued a revised draft notification proposing greenhouse gas emission intensity (GEI) targets for 255 iron and steel units under India's Carbon Credit Trading System (CCTS), inviting public feedback within 60 days.
The draft, issued by the Ministry of Environment, Forest and Climate Change on June 26 and made public on July 2, covers major companies including JSW Steel, Tata Steel, Steel Authority of India (SAIL) and ArcelorMittal Nippon Steel.
The ministry had earlier released draft targets for the iron and steel sector on June 23, 2025, along with the aluminium, petroleum refinery, petrochemical and textile sectors. While final targets for the other sectors were notified in January 2026, the ministry has now issued a revised draft for iron and steel with marginal changes, without explaining the reason for the revision.
The draft uses 2023-24 as the baseline year for product output and emission intensity, and sets compliance targets for 2026-27. The 2025-26 target column has been left blank.
Emission intensity targets are expressed in tonnes of carbon dioxide equivalent (tCO2e), a measure that accounts for the warming impact of all greenhouse gases.
The Carbon Credit Trading System, launched in 2023, aims to reduce industrial emissions through a market-based mechanism. Industries that meet or exceed their assigned targets earn carbon credit certificates, which can be traded with companies that fail to meet their targets. Non-compliant industries are required to pay environmental compensation equal to twice the average traded price of carbon credits.
The Centre has already finalised emission reduction targets for eight sectors, including aluminium, cement, chlor-alkali, pulp and paper, petroleum refinery, petrochemicals and textiles.
The revised draft forms part of India's broader climate commitments, including its target of reducing the emissions intensity of its gross domestic product by 47% by 2035 compared with 2005 levels.