Delhi Government Greenlights Carbon Credit Monetisation Plan
The Delhi Cabinet has given its official approval to a new Carbon Credit Monetisation Framework. This decision allows the state government to generate revenue by selling carbon offsets from its environmental initiatives.
Turning Environmental Action into Financial Resources
Chief Minister Rekha Gupta announced the policy on Tuesday following a Cabinet meeting at the Delhi Secretariat. She emphasized that this framework creates an additional revenue stream for development projects while supporting climate change efforts.
"Our government remains fully committed to combating climate change," Gupta stated. "This framework will provide us with extra financial resources to accelerate development work across Delhi."
The Chief Minister explained that the revenue generated will serve dual purposes. It will promote environmental conservation while also funding public welfare schemes through the State Consolidated Fund.
How the Carbon Credit System Works
The policy enables the government to scientifically measure emission reductions from various green projects. These reductions then convert into carbon credits for sale in national and international carbon markets.
Each carbon credit represents one metric tonne of greenhouse gases that a project has reduced, avoided, or stored. The framework covers multiple ongoing environmental initiatives:
- Operation of electric buses throughout the city
- Large-scale tree plantation drives
- Promotion of solar energy installations
- Waste management improvement programs
According to the Environment Department, these interventions significantly contribute to lowering Delhi's overall greenhouse gas emissions.
Implementation Without Upfront Government Spending
The government highlighted that this model requires no initial financial investment from state funds. The Environment Department will select a specialized agency through a transparent request for proposal process.
This agency will handle several crucial tasks:
- Identifying eligible government schemes for carbon credit generation
- Preparing all necessary documentation
- Completing registration according to international standards
The arrangement follows a revenue-sharing model where the agency receives a portion of proceeds, while the larger share goes directly to the government.
Coordinated Approach Across Departments
The Environment Department will serve as the nodal authority coordinating with various government departments. They will work with departments whose projects qualify for carbon credit generation under the new framework.
All receipts from carbon credit sales will appear in the government's official financial accounts. The reductions will be quantified using internationally accepted methodologies before registration and sale.
Carbon credits function as tradable units representing verified emission reductions. Polluting entities purchase these credits to offset emissions they cannot eliminate directly through their operations.
This policy represents a significant step toward sustainable financing for Delhi's environmental initiatives while supporting broader public welfare objectives.
