New Delhi: The Delhi government took a significant step on Tuesday by approving a new policy designed to tackle pollution while creating a fresh income stream. The cabinet cleared the Carbon Credit Monetisation Framework, which allows the government to earn money by cutting carbon emissions.
Policy Details and Implementation
Chief Minister Rekha Gupta chaired the cabinet meeting at the secretariat, with Environment Minister Manjinder Singh Sirsa in attendance. The CM stated that this policy reflects the government's long-term vision to combat climate change. She emphasized that environmental efforts should also support development goals.
Delhi now aims to become India's leading state in utilizing carbon markets. The goal is to reduce pollution and generate revenue simultaneously. Carbon credits provide a financial value for reducing pollution. When governments or organizations cut greenhouse gas emissions through clean technologies or better practices, they earn these credits.
How the Framework Works
Under the new framework, Delhi will convert pollution reduction from existing green projects into tradable carbon credits. The environment department will serve as the nodal agency, coordinating with other government departments. A specialized agency will be selected through a transparent tender process to ensure technical accuracy.
This agency will identify eligible projects, handle documentation, and register the carbon credits in approved markets. The policy highlights that it will not impose any financial burden on the government. Instead, the system operates on a revenue-sharing model.
Revenue Model and Fund Usage
The selected agency will receive a fixed share of the income from selling credits. The larger portion of the revenue will go directly to the Delhi government. Officials explained that this approach allows the state to generate income without spending public money.
All funds earned through carbon credit sales will be deposited into the Consolidated Fund of the State. These amounts will appear in the financial accounts. The government plans to use the money for welfare schemes and further environment improvement projects.
Benefits and Future Outlook
By linking pollution reduction with revenue generation, the government hopes to accelerate green initiatives. This strategy aims to improve air quality and public health. An official noted that citizens will enjoy the dual benefit of a cleaner environment and stronger public finances.
The policy represents a proactive move to address environmental challenges while fostering economic growth. Delhi's commitment to leveraging carbon markets sets a precedent for other states in India.
