Regulatory tracker

Fleet CO2 targets fall from 113 g per km in FY 2026-27 to 78.9 g per km by FY 2031-32. Battery electric vehicles count as three vehicles, plug-in and flex-fuel strong hybrids as 2.5 and strong hybrids as 1.6. Makers can trade credits or buy them from BEE.

Applies to:

Makers of passenger vehicles under 3,500 kg

Effective:

1 April 2027

Support for electric buses, electric trucks and testing equipment continues to 31 March 2028 within the ₹10,900 crore outlay. Support for electric two-wheelers, e-rickshaws and three-wheelers ended on 31 March 2026.

Applies to:

EV makers, state transport undertakings, testing agencies

Effective:

12 August 2026 (date reported)

Revised draft targets cover 255 iron and steel entities, with compliance proposed from FY 2026-27. Final targets are still to be notified.

Applies to:

Iron and steel obligated entities

Effective:

Proposed from FY 2026-27

New Rule 4A of the CSR Rules and a new Schedule VII item let companies meet up to 10% of yearly CSR spending by subscribing to ZCZP instruments of SSE-registered non-profits. Projects must be completed within three financial years, and the subscribing company does not need its own impact assessment for them.

Applies to:

Companies covered by Section 135

Effective:

27 May 2026

A ZCZP issue can now proceed at 50% subscription, instead of 75%, where the SSE has checked that the project remains viable at the smaller size. A registered non-profit can wait up to two years before raising funds, extendable by one year.

Applies to:

Non-profits registered on a Social Stock Exchange

Effective:

Immediate (April 2026)

CSDDD now covers EU companies with more than 5,000 employees and €1.5 billion turnover and non-EU companies with €1.5 billion EU turnover, applying from 26 July 2029. CSRD thresholds rise to more than 1,000 employees and €450 million turnover.

Applies to:

Large EU companies and non-EU groups with large EU operations; Indian suppliers indirectly

Effective:

18 March 2026 (CSDDD applies from 26 July 2029)

Reviewers must be independent of the issuer, its directors, senior management and key managerial personnel, be paid in a way that avoids conflicts, and have expertise in ESG debt. Reviewer details and the scope of review must be in the offer document.

Applies to:

Issuers of listed green debt securities

Effective:

27 February 2026

Brings together the SSE rules, including registration criteria for non-profits, ZCZP issue terms (minimum issue ₹50 lakh, minimum application ₹1,000) and the Annual Impact Report due by 31 October.

Applies to:

Non-profits and social enterprises using the SSE; stock exchanges

Effective:

19 January 2026

Importers of covered goods start paying for embedded emissions, with 2.5% of embedded emissions payable in 2026, rising to 100% in 2034. Certificate sales begin in February 2027.

Applies to:

EU importers of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen; Indian exporters indirectly

Effective:

1 January 2026

Final emission intensity targets for 208 entities, taking the total under CCTS to about 490.

Applies to:

Obligated entities in the four sectors

Effective:

Compliance years as notified

Consolidated rules for green deposits and green finance: board policies, a financing framework with external review, eligible and excluded activities, parking of unallocated funds in liquid assets, yearly third-party verification and impact assessment.

Applies to:

Commercial banks; separate Directions for small finance banks and deposit-taking NBFCs and HFCs

Effective:

28 November 2025

A single wage definition, gratuity for fixed-term employees after one year, social security for gig and platform workers and a 300-worker threshold for prior approval of layoffs. Final rules were still being notified.

Applies to:

Employers and platform aggregators

Effective:

21 November 2025

Material related-party transactions are now measured on a sliding scale of consolidated turnover, capped at ₹5,000 crore, replacing the old test of ₹1,000 crore or 10% of turnover.

Applies to:

Listed companies

Effective:

As notified in the amendment

The Rules make the DPDP Act operational, with most duties applying after 18 months. Penalties reach ₹250 crore for failing to take reasonable security safeguards.

Applies to:

All data fiduciaries

Effective:

Phased; core duties from about May 2027

Final emission intensity targets for 282 entities in the first four sectors.

Applies to:

Obligated entities in the four sectors

Effective:

Compliance years as notified

The total renewable consumption obligation rises from 29.91% of electricity consumption in FY 2024-25 to 43.33% by FY 2029-30.

Applies to:

Designated consumers, including distribution companies, open access and captive users

Effective:

As notified

Plants near the NCR and million-plus cities must comply by December 2027, plants near critically polluted areas by December 2028 or seek an exemption, and other plants need no flue gas desulphurisation if their stack heights meet the limits.

Applies to:

Coal-based thermal power plants

Effective:

11 July 2025

Consolidates SEBI's rules for ESG rating providers, including business models, disclosures, rating withdrawal and how rated companies can respond.

Applies to:

SEBI-registered ESG rating providers

Effective:

11 July 2025

Support of ₹18 lakh per MWh from the Power System Development Fund, paid 20% at financial closure, 50% at commissioning and 30% after one year of operation.

Applies to:

Battery storage projects in 15 states and NTPC

Effective:

10 June 2025 (date announced)

Rules for social bonds, sustainability bonds and sustainability-linked bonds, requiring alignment with recognised standards, an independent reviewer and initial and continuous disclosures.

Applies to:

Issuers of listed ESG debt securities

Effective:

5 June 2025

A draft with climate supportive (two tiers) and transition supportive categories and first sectors including power, mobility, buildings, agriculture, steel and cement. Comments closed on 25 June 2025; still a draft at the time of review.

Applies to:

Proposed for lenders, issuers and investors

Effective:

Not yet final

Companies can choose assessment or assurance for BRSR Core; value chain disclosures become voluntary for the top 250 from FY 2025-26, covering partners with 2% or more of purchases or sales; green credit disclosures added from FY 2024-25.

Applies to:

Top 1,000 listed companies

Effective:

28 March 2025