Coal India (CIL) strengthened its sustainability and energy-transition initiatives during FY 2025-26, reporting lower greenhouse gas emissions, sharply higher renewable energy consumption, expansion of solar capacity, large-scale land restoration and increased research spending on environmental technologies.
The state-owned coal producer is pursuing a major renewable energy expansion alongside efforts to reduce the environmental footprint of mining. CIL has already installed 357 MW of renewable energy capacity across its subsidiaries against a 5,602.55 MW renewable energy generation target under its five-year action plan. Its climate mitigation roadmap separately targets 3,000 MW of solar capacity by FY 2027-28 and 9.5 GW by 2030, Coal India Sustainability Report 2025-26 indicated.
Coal India Scope 1 and Scope 2 GHG Emissions Decline
For CIL and its subsidiaries, Scope 1 greenhouse gas emissions declined to 26.24 million metric tonnes of CO2 equivalent in FY 2025-26 from 26.68 million tonnes in FY 2024-25. Scope 2 emissions fell more sharply to 7.69 million tonnes from 8.32 million tonnes.
Joint ventures separately reported 1.95 million tonnes of Scope 1 emissions and 15,787.77 tonnes of Scope 2 emissions for FY 2025-26.
CIL’s combined Scope 1 and Scope 2 emissions intensity based on turnover improved to 213.15 metric tonnes CO2e per ₹ crore from 244.10. On a purchasing-power-parity basis, emissions intensity declined to 4,340.71 metric tonnes CO2e per US$ crore from 5,043.06.
However, emissions intensity based on physical production moved in the opposite direction, rising to 46,727.04 metric tonnes CO2e per million tonnes of production from 44,805.85 tonnes.
The BRSR assurance section gives the combined FY 2025-26 Scope 1 figure across its assured reporting boundary as 28.19 million tonnes CO2e, rather than the 281.90 million tonnes stated in the supplied draft. This is consistent with 26.24 million tonnes for CIL and subsidiaries plus 1.95 million tonnes for joint ventures. The distinction is important when comparing CIL’s sustainability metrics across reporting boundaries.
Scope 3 Emissions Fall to 876,337 Tonnes
Coal India’s indirect value-chain emissions also declined.
Scope 3 GHG emissions fell to 876,337 metric tonnes CO2e in FY 2025-26 from 893,653.70 tonnes in the previous year. Scope 3 emissions per rupee of turnover improved to 5.20 from 6.23, while Scope 3 emissions intensity declined to 1,140.78 from 1,144.16.
The improvement adds another dimension to CIL’s decarbonisation efforts, although the company’s overall emissions footprint remains substantial because of the energy- and carbon-intensive nature of coal mining and transportation.
Renewable Energy Consumption More Than Doubles
One of the strongest sustainability improvements came from renewable energy consumption.
CIL and its subsidiaries consumed 919,626.39 GJ of renewable energy during FY 2025-26, more than double the 434,621.71 GJ recorded a year earlier.
Total energy consumption was around 20.04 million GJ, compared with 19.09 million GJ in FY 2024-25, while non-renewable energy consumption increased to approximately 19.12 million GJ from 18.66 million GJ.
Under the BRSR Core assurance boundary, which incorporates the relevant wider reporting scope, total energy consumption was reported at 20,122,509.06 GJ, with renewable energy accounting for 4.57 percent.
The figures show that renewable energy is expanding rapidly from a relatively small base, meaning CIL still has significant scope to increase clean electricity’s contribution to its overall energy requirements.
3,000 MW Solar Target and ₹961 Crore Clean-Energy Push
Solar power is becoming central to Coal India’s diversification strategy. The company aims to scale solar capacity to 3,000 MW by FY 2027-28, followed by a longer-term 9.5 GW target by 2030.
CIL’s sustainability programme also identifies ₹961 crore for clean-energy projects and utility-scale solar developments, including projects at Khavda and Patan, according to the figures provided in the sustainability material.
The expansion is significant because CIL currently has 357 MW of installed renewable capacity against its broader 5,602.55 MW five-year renewable generation target.
46 First Mile Connectivity Projects Target 1.2 Million Tonnes of CO2 Savings
Coal India’s decarbonisation strategy extends beyond renewable electricity.
The company estimates that 46 First Mile Connectivity projects can reduce CO2-equivalent emissions by nearly 1.2 million metric tonnes every year by reducing dependence on road-based coal transportation.
CIL’s large-scale plantation programme is also estimated to have an annual carbon-sink potential of 1.2 lakh tonnes.
These measures complement renewable energy investments by tackling transportation emissions and strengthening nature-based carbon sequestration.
Plantation Reaches 2,404 Hectares
Ecological restoration remains another major sustainability priority.
Coal India completed plantation across 2,404 hectares in FY 2025-26, including 51.80 hectares developed using the Miyawaki plantation technique. The company is working toward a five-year plantation target covering 13,225.07 hectares.
CIL has also reported cumulative reclamation of 210.96 square kilometres of mined land, demonstrating the scale of its efforts to restore land affected by mining.
The five-year environmental plan additionally targets grassing across 900 hectares, establishment of 13 overburden-to-M-Sand plants, rejuvenation of 441 traditional water bodies, and development of 48 eco parks, mine-tourism sites and recreational parks.
During FY 2025-26, CIL produced approximately 16,500 cubic metres of M-Sand, completed grassing across 323 hectares, rejuvenated 48 water bodies, taking the cumulative number to 57, and developed 6 new eco parks, bringing the cumulative total to 39 eco-parks and mine-tourism or eco-restoration sites.
68.17 Percent of R&D Spending Targets Environmental and Social Technologies
Innovation is playing a larger role in Coal India’s ESG strategy.
In FY 2025-26, 68.17 percent of CIL’s R&D expenditure was directed toward technologies designed to improve environmental and social impacts, compared with 38.02 percent in FY 2024-25.
Projects covered areas including sustainable energy, underground coal gasification, fluoride removal from groundwater, bifacial perovskite solar cells, environmental assessment of fly-ash use, a smart algal liquid tree for CO2 absorption, green hydrogen and utilisation of mining overburden for road construction.
The sharp increase in the R&D share indicates that environmental technology is becoming a more prominent part of CIL’s innovation spending.
Coal India Water Consumption Reaches 3,387.81 Lakh KL
Water management remains a major environmental challenge for CIL’s mining operations.
Under the BRSR Core assured disclosures, total water consumption during FY 2025-26 was 3,387.81 lakh KL, based on total water withdrawal of 6,433.96 lakh KL. Water discharge reached 3,046.15 lakh KL.
Water-consumption intensity was reported at 0.41 lakh KL per US$ crore on a PPP-adjusted basis, while physical-output water intensity stood at 4.4 lakh KL per tonne of production under the disclosed methodology.
CIL’s five-year plan aims to supply 2,948.11 LKL of treated mine water annually to communities, potentially benefiting 920 villages and around 13.13 lakh people. In FY 2025-26, the company supplied 3,140.55 LKL, benefiting 971 villages and more than 16.20 lakh people, already exceeding those annual beneficiary benchmarks.
Waste Management and Environmental Compliance Remain Challenges
Waste continues to require close management across Coal India’s large operational footprint.
The 1,503.46 metric tonnes of waste cited in the supplied material relates specifically to Coal India’s joint ventures, rather than CIL’s entire consolidated waste stream. This included 175.58 tonnes of plastic waste and 1,162.51 tonnes of other hazardous waste, making it important not to present those figures as CIL-wide totals.
Environmental compliance also remains an area requiring continued attention. The report records penalties at individual mining operations for environmental issues, including cases linked to untreated mine-water discharge. Examples include penalties of ₹420,000 and ₹360,000, with treatment infrastructure such as a 4.5 MLD plant and a 2 lakh-litre settling tank proposed as corrective measures.
Coal India’s Net-Zero Challenge
Coal India’s sustainability report places climate change and GHG emissions among its material business risks as India advances toward its COP-aligned net-zero transition.
However, the report sections reviewed do not specify a standalone corporate Net Zero year for Coal India. Instead, the company’s current measurable transition roadmap centres on reducing emissions, increasing renewable energy, expanding solar capacity, improving energy efficiency, lowering transport emissions, restoring mined land and increasing carbon sequestration.
With Scope 1 emissions at 26.24 million tonnes CO2e, Scope 2 emissions at 7.69 million tonnes, Scope 3 emissions at 876,337 tonnes and renewable energy consumption more than doubling to 919,626.39 GJ, Coal India’s FY 2025-26 results show measurable environmental progress alongside the scale of the transition still ahead.
The critical milestones will be whether CIL can move from 357 MW of installed renewable capacity toward 5,602.55 MW, deliver 3,000 MW of solar by FY 2027-28 and 9.5 GW by 2030, while simultaneously lowering absolute emissions and emissions intensity as production requirements evolve.
SHAFANA FAZAL
