India has released a revised draft that would set mandatory greenhouse gas emission intensity targets for 255 iron and steel plants. The plan operates under the Carbon Credit Trading Scheme (CCTS) and covers major producers like Tata Steel, JSW Steel, SAIL, and ArcelorMittal Nippon Steel India. The baseline year is FY2023-24, with the first compliance period starting FY2026-27. Plants that beat their targets earn tradable carbon credits. Those that miss them face penalties equal to twice the average market price of those credits. The Ministry of Environment, Forest and Climate Change is accepting public feedback for 60 days. Steel becomes the ninth energy intensive industry added to India's national carbon management system. The move signals that India is expanding its market based approach to industrial decarbonization beyond the power sector. For carbon credit traders and climate policy watchers, the key details to track are the specific emission intensity baselines per plant, how the penalty price is set, and whether the credits will be fungible with India's broader carbon market. The 60 day comment period is open now.
