According to a notification issued on January 13, 2026, textiles, along with petroleum refineries, petrochemicals and secondary aluminium, have been designated as obligated sectors. With this inclusion, the total number of obligated entities under the ICM rises to 490, up from 282 earlier, the Ministry of Environment, Forest and Climate Change said in a press release.
Under the compliance mechanism, textile units will be required to achieve assigned emission intensity reduction targets. Companies that exceed their targets can earn carbon credit certificates, which may be traded with entities that fail to meet their obligations, creating a market-based incentive for decarbonisation.
The CCTS, notified in 2023, aims to reduce greenhouse gas emissions across India’s economy by assigning a price to carbon emissions. The government said expanding coverage to textiles reflects sustained industry consultations and technical assessments, and is expected to push energy efficiency, cleaner fuel adoption and process optimisation across the textile value chain.
Fibre2Fashion News Desk (KD)
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