NEW DELHI: In a Cabinet meeting held on Tuesday, the Delhi government gave a nod to implement the ‘Carbon Credit Monetisation Framework’ in the national capital, following in the footsteps of Meghalaya, Arunachal Pradesh and Indore city.The Department of Environment, Forests and Wildlife said in a statement that Delhi’s ongoing initiatives such as the electric vehicle rollout, urban forestry, Yamuna restoration, solar energy adoption and waste-to-energy plants would generate tradable carbon credits, creating new funding for environmental protection without any financial burden on the government.It further said work was underway to convert the city’s existing green projects into revenue-generating assets for pollution control and sustainability, subject to Cabinet approval.It added that for every one metric tonne of carbon dioxide reduced through Delhi’s climate initiatives, one carbon credit would be generated, which could be sold in carbon markets in India and abroad.The no-financial-liability model would help existing green efforts across departments, including transport, power, forests, Delhi Jal Board, and urban development, according to the statement.Chief Minister Rekha Gupta said the implementation of the Carbon Credit Monetisation Framework will provide the government with an additional source of revenue, thereby accelerating development works. Gupta further said this will not only promote environmental conservation, but the revenue generated will also be deposited into the Consolidated Fund of the State and utilised for public welfare schemes.According to her, the initiative will enhance the efficiency of various departments and provide citizens with the benefits of a cleaner and healthier environment.The chief minister said that through this initiative, the Delhi government is not only leading India’s commitments against climate change, but is also opening new financial pathways for sustainable development, and that Delhi will emerge as the country’s leading state to harness the benefits of the carbon market. The scheme will cover various initiatives being implemented by different departments, with the environment department acting as the nodal department for the entire process, officials said.At present, the Delhi government is operating electric buses, undertaking large-scale plantation drives, promoting solar energy and implementing waste management initiatives, all of which contribute to reducing carbon emissions.Under the new policy, the reduction in pollution achieved through these initiatives will be scientifically measured and registered as carbon credits.These carbon credits can then be sold in national and international carbon markets, enabling the Delhi government to earn revenue.According to the Department of Environment, the most significant feature of the scheme is its financial model.Through a transparent tender or request for proposal process, the department will select a specialised agency, which will identify schemes that can generate carbon credits. It will also undertake documentation and registration in accordance with international standards, officials said.The entire process will be based on a revenue-sharing model, meaning the government will not have to incur any expenditure.A portion of the revenue generated will go to the agency, while the larger share will accrue to the government exchequer, they said.All revenue generated through the framework will be deposited directly into the Consolidated Fund of the state and reflected in the financial accounts of the Delhi government.The funds can be utilised to further strengthen development initiatives and environmental improvement efforts.”These efforts will help unlock economic value from pollution reduction while also supporting environmental goals,” Environment Minister Manjinder Singh Sirsa said.He further added that this framework allows us to quantify these achievements, certify them under global standards like VERRA, Gold Standard, and the Indian Carbon Market, and monetise them transparently. The revenue will fuel further pollution control and climate mitigation, making Delhi a model for urban sustainability.Explaining the core objectives of the framework, the ministry said it aims to create a structured system to identify, verify and register emission-reduction projects across sectors.It added that developing a strong ‘Monitoring, Reporting and Verification (MRV)’ mechanism would ensure accurate data, transparency and international auditability.The ministry said other objectives include enabling smooth issuance and trading of carbon credits through approved platforms, strengthening departmental capacity for long-term participation in carbon markets, and positioning Delhi as a leader in climate finance aligned with national goals.The statement said expert agencies would be engaged on a success-fee basis, meaning payments would be made only after revenue is earned, ensuring zero upfront cost to the government. Up to three agencies will be empanelled to ensure scalability and wider participation.It added that the process of engaging these agencies would begin shortly and would cover project assessment, documentation, validation, registration, issuance of credits, trading strategies and capacity building.Revenue generated would be used through a dedicated mechanism for pollution control, climate adaptation and environmental management.If utilised effectively, Delhi’s carbon credit potential could run into hundreds of crores, creating a steady funding source for environmental protection, the statement claimed. PTI Go to Source
