This paper aims at identifying the factors that have influenced the changes in the level of energy-related CO2 emissions. By means of decomposition method the observed changes are analysed in terms of four factors: pollution coefficient, energy intensity, structural changes and economic activity. The study refers to the major economic sectors of India for the period 1980-1996. The results show economic growth has the largest positive effect in CO2 emissions changes in all the major economic sectors. Emissions of CO2 in industrial and transport sectors show a decreasing trend due to improved energy efficiency and fuel switching. However, the reducing effect of the pollution coefficient and energy intensity on CO2 emissions in agricultural sector is almost nil. The energy intensity varies over a wider range and has had a greater impact on energy-induced CO2 emissions than the pollution coefficient. (C) 2003 Elsevier Ltd. All rights reserved.