# EPA-Style Mandatory GHG Reporting Is Coming to India: What MSMEs Should Do Now

Canonical: https://senseible.earth/climate-intelligence/epa-mandatory-greenhouse-gas-reporting-msme-india

Published 2026-05-06.

India's Carbon Credit Trading Scheme (CCTS) compliance mechanism sets greenhouse gas emission-intensity targets for obligated entities in energy-intensive sectors, with targets notified sector by sector. Its measurement, reporting and verification model resembles established schemes such as the EU ETS.

## Sectors covered first

Sectors identified for the compliance mechanism include aluminium, cement, chlor-alkali, fertiliser, iron and steel, pulp and paper, petrochemicals, petroleum refining and textiles.

## What thresholds mean for MSMEs

Obligated entities are named in sector-specific notifications, and their targets are set as emission intensity per tonne of product rather than as absolute caps. Most MSMEs will not be obligated entities, but large units in these sectors, and their suppliers, should check the notified lists.

Check your status against the notified list for your sector rather than estimating it from your emissions alone.

## What you need to file

- Annual emissions and production data for the plant boundary
- Emission intensity per tonne of product
- Energy efficiency action plan
- Verified by an accredited carbon verification agency

## How CCTS interacts with CBAM

For exporters to the EU, CCTS creates a domestic carbon credit market, but its prices are still being established. Under CBAM, EU importers can deduct a carbon price effectively paid in the country of origin on the embedded emissions, net of any rebate or compensation. How much of a CCTS cost will qualify is not yet settled, so do not assume rupee-for-rupee relief.

## What to do now

1. Map your annual emissions against the threshold using [Senseible](https://senseible.earth/)
2. If you are close to being covered in your sector, start preparing
3. Use the [Carbon Pricing Impact calculator](https://senseible.earth/calculators/carbon-pricing-impact) to model CCTS + CBAM combined exposure
4. Engage a BEE-accredited verifier early, since verifier capacity may be limited

## Related guides

- [Can we reroute supply chains to reduce CBAM exposure legally?](https://senseible.earth/climate-intelligence/reroute-supply-chains-reduce-cbam-exposure)
- [CBAM for Indian Exporters: What Changed on 1 January 2026](https://senseible.earth/climate-intelligence/cbam-compliance-indian-exporters)
- [BRSR Reporting Requirements in India: Who Reports, BRSR Core and Value-Chain Rules](https://senseible.earth/climate-intelligence/brsr-reporting-requirements-india)