BEE notifies greenhouse gas intensity targets for the first CCTS compliance cycle
Obligated entities across aluminium, cement, chlor-alkali, fertiliser, iron and steel, paper, petrochemicals, petroleum refinery and textiles receive their targets.
The Bureau of Energy Efficiency has notified entity-level greenhouse gas emission intensity targets for the first compliance cycle of the Carbon Credit Trading Scheme, covering obligated entities across nine energy-intensive sectors.
How the mechanism works
Obligated entities receive a greenhouse gas emission intensity target expressed as tCO₂e per tonne of product. At the end of the compliance year, actual intensity is verified by an accredited carbon verification agency.
Entities performing better than target earn carbon credit certificates, tradable on the power exchanges. Entities falling short must purchase and surrender certificates to cover the gap, or pay environmental compensation at twice the average traded price.
This is India's first compliance carbon market, distinct from the voluntary market and from the earlier PAT scheme, though it builds on PAT's institutional machinery.
What obligated entities should be doing now
The compliance year has already begun. The verification happens after it ends. That ordering means the actions available narrow as the year progresses.
Establish the measurement basis immediately. Verified emissions intensity depends on measurement methodology, boundary definition and data quality. Entities discovering measurement gaps during verification have no remedy — the year's data cannot be recreated.
Model the projected position quarterly. Whether you will be long or short at year end is knowable well before year end, and it determines whether you are a buyer or a seller in a market that is new and will not be deep.
Do not plan to buy in March. A compliance market where every short entity buys in the final month is a market where certificates are expensive. Entities projecting a shortfall should be establishing procurement well ahead.
Interaction with other disclosure
The verified intensity figure will not necessarily match the greenhouse gas intensity reported under BRSR Core, because boundary and methodology definitions differ. Both numbers will be public.
Entities should understand and be able to explain the difference before both are in the public domain, rather than after an analyst asks.
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This analysis is provided for information only and does not constitute legal advice. Read it alongside the primary source it cites. Where a source reference is given (BEE/CCTS/Targets/2026), that is the authoritative text.