Centre Revises Emission Intensity Baselines for Seven IOC Refineries

The Centre has amended its notification setting legally binding greenhouse-gas emission-intensity targets for petroleum refineries and the textile sector, revising baseline emission figures for at least seven refineries operated by Indian Oil Corporation.

The Ministry of Environment, Forest and Climate Change issued the amendment on September 22, modifying the original notification published in January. A comparison of the two notifications shows that the baseline emission intensities — the reference levels against which future performance is measured — have been changed for Indian Oil's refineries at Digboi, Gujarat, Guwahati, Haldia, Mathura, Panipat and Paradeep, with corresponding revisions to their emission-intensity reduction targets.

The amendment retains only the 2026-27 compliance targets, leaving the 2025-26 targets blank, apparently because that compliance period has ended.

These targets, known as GHG emission intensity (GEI) targets, are being introduced across sectors to bring them within the ambit of the country's domestic carbon market under the Carbon Credits Trading Scheme (CCTS). The scheme was launched in 2023 to create a market-based mechanism that incentivises emission reduction and supports India's climate action goals.

Under the framework, each obligated industry is assigned a GEI target based on emissions per unit of output. Industries that meet or outperform their targets earn carbon credit certificates, which can be sold to industries falling short. Non-compliant industries must pay compensation equal to twice the average carbon credit traded price. Targets are expressed in tonnes of carbon dioxide equivalent (tCO2e), a measure that captures the warming potential of all greenhouse gases, not just CO2.

The amendment covers 21 petroleum refineries belonging to Reliance Industries Ltd, Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, Chennai Petroleum Corporation, Hindustan Petroleum Corporation Ltd, Mangalore Refinery and Petrochemicals Ltd, Nayara Energy and Numaligarh Refineries Ltd. In the textile sector, it covers 173 units across three sub-sectors.

Parth Kumar, Programme Manager of the Sustainable Industrialisation Unit at the Centre for Science and Environment, said that while updating data is important for accuracy, delays in notifying targets and frequent changes in compliance requirements can create uncertainty for industry and the market.

"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," he said.

Heavy industries and core manufacturing sectors, where emission reduction is difficult, have been brought under these targets. So far, the Centre has set targets for aluminium, cement, chlor-alkali, pulp and paper, petroleum refineries and textiles. A revised draft of targets for iron and steel is under consideration.