Delhi Cabinet clears carbon credit policy to monetise Capital’s green projects

The proposal, brought by the Environment Department and cleared at a Cabinet meeting held at the Delhi Secretariat, enables the government to scientifically measure emission reductions from its projects, convert them into carbon credits, and monetise them.

According to the government, the policy covers a range of ongoing green initiatives, including the operation of electric buses, large-scale plantation drives, promotion of solar energy, and waste management programmes. These interventions, the Environment department said, contribute to lowering greenhouse gas emissions. Under the framework, the reductions will be quantified using internationally accepted methodologies, registered as carbon credits, and then sold in carbon markets.

The model does not require upfront government spending, the government said in a statement. The Environment Department will select a specialised agency through a transparent request for proposal process. The agency will be responsible for identifying eligible schemes, preparing documentation, and completing registration in line with international standards. The arrangement will follow a revenue-sharing model, under which a portion of the proceeds will go to the agency, while the larger share will accrue to the government.
Carbon credits work by quantifying a verified reduction or removal of greenhouse gas emissions as tradable units, which polluting entities can purchase to offset emissions they are unable to eliminate directly.

The Environment Department said it will act as the nodal authority to coordinate with various government departments whose projects qualify for carbon credit generation. All receipts from the sale of credits will be reflected in the government’s financial accounts, the department stated.