Climate Change

As a leader in India's energy sector, GAIL recognizes the urgent need to address climate change and is committed to reducing Greenhouse Gas (GHG) emissions, enhancing energy efficiency, and transitioning towards low-carbon and renewable energy solutions. In alignment with India’s Net Zero goal by 2070, GAIL targets 100% reduction in Scope-1 and Scope-2 GHG emissions by 2035. In addition, we have pledged to reduce Scope-3 emissions by 35% by 2040. GAIL integrates climate risk assessment into its business strategy, aligning with Task Force on Climate-related Financial Disclosures (TCFD) recommendations.


Our Approach

  • Scenario Analysis: Evaluating the impact of climate risks on GAIL’s operations under different warming scenarios.
  • Physical and Transition Risk Management: Assessing risks such as extreme weather events, policy changes, and market shifts due to the global energy transition.
  • Investment in Climate-Resilient Infrastructure: Upgrading facilities to withstand climate-related disruptions while enhancing operational sustainability.

Vision and Action Pertaining to Climate Strategy

GAIL is steadfast in its commitment to supporting India’s Nationally Determined Contributions (NDC) and achieving net-zero emissions. As part of this vision, GAIL has set an ambitious target of installing 3600 MW of renewable energy capacity by 2035, reinforcing its dedication to sustainable energy development and environmental responsibility.

Key Pillars of GAIL’s Sustainability Strategy

  1. Enhancing Quality of Life: GAIL prioritizes sustainability by delivering environmentally friendly products and services that positively impact society and the environment.
  2. Net Zero Emissions Target and Roadmap: GAIL has developed a GHG emission reduction roadmap aligned with global climate action goals to achieve carbon neutrality.
  3. Natural Gas and Clean Energy: GAIL champions clean energy transition by promoting natural gas, green hydrogen, biogas, and renewable energy as sustainable and efficient energy sources.
  4. Value Creation for Stakeholders: The company is committed to creating long-term sustainable value for employees, customers, investors, and society through economic growth, innovation, and social impact initiatives.

Climate Risk Adaptation Strategies

GAIL proactively addresses climate-related physical and transition risks by enhancing asset resilience to extreme weather events through robust design and monitoring systems. We regularly mitigate these parameters by investing in solar and wind energy projects to balance climate change impacts while implementing strict water conservation strategies, including improved storage and flood mitigation systems. Additionally, all coastal sites are equipped with flood prevention measures, and GAIL’s Crisis Management Plan (CMP) ensures operational safety during emergencies.


Climate Risk Mitigation Strategies Matrix

Risk Type Challenges Mitigation Strategies
Physical Risk Extreme weather, sea level rise, biodiversity loss Developing climate-resilient assets, enhancing digitalization for real-time monitoring, and improving emission accounting.
Transition Risk Compliance with evolving environmental laws Ensuring adherence to all licenses, authorizations, and environmental regulations through a SAP-based tracking system.
Market Risk Transition to clean energy reducing demand for fossil fuels Investing in green fuels, ethanol-blended petrol, biofuels, and renewable energy to diversify the energy portfolio.
Technology Risk High cost of adopting clean energy solutio Implementing GHG reduction measures, including CO₂ valorisation, CBG, Green Hydrogen, Renewable Energy projects, and afforestation.

Net Zero Strategy

To develop a credible and science-based Net Zero Emissions roadmap, GAIL undertook a comprehensive assessment of its historical and projected GHG emissions. The Company has been reporting its greenhouse gas emissions since 2011, and time series data were analysed to understand trends and peak emission years. GAIL has adopted FY 2021-22 as the base year for its GHG emissions assessment and target-setting. For the purpose of projection, the highest emissions observed over the past three financial years have been considered as the baseline reference, ensuring consistency and comparability.
GAIL has adopted a science-based approach to formulate a comprehensive roadmap for achieving Net Zero emissions. GAIL’s Net Zero ambition is underpinned by a robust assessment of its GHG emissions footprint across the three scopes. Scope-1 emissions represent direct emissions from owned or controlled operations, while Scope-2 covers indirect emissions from the consumption of purchased electricity or steam. Scope-3 emissions, which often constitute the largest share in the Oil & Gas value chain, include indirect emissions from activities such as employee commute and the use of sold products like Natural Gas and Liquid Hydrocarbons.

Net Zero Action Plan

In FY 2025-26, GAIL continued to pursue its Net Zero target through Electrification of Natural Gas-based equipment, generation of equivalent Renewable Energy, Compressed Biogas (CBG), Green Hydrogen, CO₂ Valorisation, Energy Efficiency Improvement Projects, and Nature-based Offsetting.

GAIL continues to base its decarbonisation strategy on three elements: Avoidance, Mitigation, and Offsetting with new expansion projects preferably designed as "Net Zero by Design" to avoid increasing baseline emissions. GAIL has also planned capital investment of approximately INR 6,400 Crore in Renewable Energy and green fuel projects during this phase.

GAIL has developed its Net Zero Plan based on the following abatement levers:

  1. Electrification

    Electrification of the compressor at Vijaipur (3.6 MW electric motor drive, commissioned January 2025) continues in successful operation. Electrification of three additional compressors of similar capacity is planned/underway.

  2. Renewable Energy (RE)

    RE capacity grew from 146 MW during FY 2024-25 to 154 MW (118 MW wind + 36 MW solar) during FY 2025-26. The target remains 3,600 MW by 2035.

    Commissioned this year: 7.75 MW Floating Solar and 1.8 MW ground-mounted solar, both at Vijaipur.

    Under execution: 17.5 MW Floating Solar at Pata; 12.5 MW Rooftop Solar across various installations; 178.2 MW Wind Power Project in Maharashtra.

    Approved, work commencing shortly: 600 MW Solar + 550 MWh BESS in Uttar Pradesh (Jhansi); 100 MW Solar + 22 MWh BESS in Maharashtra.

  3. Compressed Biogas (CBG)

    GAIL still plans 26 CBG plants overall. The Ranchi plant (5 TPD, based on 150 TPD MSW) has been running since January 2025. Six additional projects (~94.6 TPD combined capacity) are under implementation across Bengaluru, Sultanpur, SBS Nagar, Moga, Ambikapur, and Korba.

    through surveys, workshops, and consultations to evaluate the importance and severity of impacts.
  4. Green Hydrogen

    The 10 MW PEM Electrolyser-based Green Hydrogen plant at Vijaipur continues to operate, with hydrogen blended with natural gas for captive fuel use. GAIL is making provision for cascade filling of Green Hydrogen at Vijaipur, expected to be operationalised in FY 2026-27, enabling commercial sale of the product.

  5. Carbon Valorization

    The 1 TPD pilot-scale biological CO₂ capture project using microalgae continues at Pata. The 15 TPD CO₂-to-Ethylene pilot with the partner is now in the trials stage (progressed from "startup and commissioning" last year). GAIL continues to explore CO₂-to-SAF and other value-added pathways.

  6. Energy Efficiency Improvement Projects

    Energy Efficiency is often called the “first fuel” in clean energy transitions, as it provides some of the quickest and most cost-effective CO2 mitigation options while lowering energy bills. Energy Management System is implemented at major O&M locations and various energy efficiency improvement initiatives are being undertaken on a regular basis. The Company’s major installations are already ISO-50001 Energy Management System certified.

  7. Nature based Offsetting

    Afforestation forms an integral part of GAIL's carbon offsetting strategy, contributing to enhanced carbon sequestration, biodiversity conservation, ecosystem restoration, and climate resilience. Through sustained tree plantation programmes, GAIL continues to strengthen green cover across its operational locations and surrounding communities, complementing its broader decarbonisation initiatives.
    More than 4 Lakh trees have been planted in the last 03 years, including plantation of ~75,000 trees near Vijaipur (Guna), ~42,000 trees under ‘Ek Ped Maa Ke Naam 1.0’ and ~48,000 trees under ‘Ek Ped Maa Ke Naam 2.0’ across various GAIL locations.

Please Refer Sustainability Report 2025-26 for more information:

https://www.gailonline.com/Sustainability_Report.html