The Delhi State Cabinet has greenlit a carbon credit monetization framework to transform verified greenhouse gas (GHG) emission reductions into tradable assets. This move aims at generating revenue for environmental and developmental initiatives without straining public finances.
The initiative leverages Delhi’s ongoing green projects—including EV bus fleet, urban afforestation, solar energy integration, and enhanced waste management—to quantify and certify emission reductions. These will be issued as carbon credits (each representing one tonne of CO2 equivalent avoided) and marketed on domestic and international exchanges.
Proceeds will flow into a dedicated consolidated fund for climate-resilient infrastructure and sustainability programs. Chief Minister Rekha Gupta highlighted the framework’s dual impact said, “It underscores Delhi’s leadership in climate action while pioneering financial mechanisms for sustainable growth, positioning the National Capital Territory as a frontrunner in carbon markets.”
The model operates on a zero-financial-liability basis, with third-party agencies earning success-based fees only post-revenue realization, minimizing fiscal risk. Environment Minister Manjinder Singh Sirsa noted its application to key initiatives like electric mobility, urban forestry, Yamuna river restoration, and waste-to-energy facilities. “Delhi’s environmental investments will now yield quantifiable returns, reinvested in pollution mitigation and resilience-building,” he added.
A stringent monitoring, reporting, and verification (MRV) system will ensure compliance with global standards, enabling registration on platforms like VERRA, Gold Standard, or India’s nascent carbon market.
Delhi’s approach builds on proven precedents: Indore Municipal Corporation secured ₹50 lakh from credits via composting, biomethanation, and solar initiatives; Meghalaya’s agroforestry program compensated farmers at up to €40 per tonne sequestered; and Arunachal Pradesh’s small hydro projects yielded over 16,000 credits.
