In a landmark move combining environmental responsibility with economic opportunity, the Delhi government has approved a Carbon Credit Monetisation Framework, aiming to generate revenue while actively combating climate change.
The decision was taken during a cabinet meeting held at the Delhi Secretariat on Tuesday under the leadership of Chief Minister Rekha Gupta. With this policy, Delhi becomes one of the first major states in India to systematically monetise carbon emission reductions through national and international carbon markets.
Green Initiatives to Generate New Revenue Stream
Speaking after the cabinet approval, Chief Minister Rekha Gupta said the Delhi government is fully committed to fighting climate change. She explained that the new framework will allow the government to sell carbon credits generated from emission-reducing projects, creating a sustainable and long-term source of revenue.
The income generated from carbon credit trading will be deposited directly into the Consolidated Fund of the State and will be utilised for public welfare schemes and development projects across the capital.
Delhi to Emerge as a Leader in Carbon Markets
The Chief Minister said this initiative would help Delhi play a leadership role in meeting India’s climate commitments. The policy is expected to open new financial opportunities for sustainable development and position Delhi as a frontrunner in effectively leveraging the carbon market.
Projects That Will Generate Carbon Credits
According to the Environment Department, the framework will cover several government-led initiatives that reduce carbon emissions. These include:
●Operation of electric buses
●Large-scale plantation drives
●Promotion of solar energy
●Waste management and waste-to-energy projects
The reduction in emissions from these initiatives will be measured using scientific methods, registered as carbon credits under international standards, and then traded in recognised carbon markets.
Revenue Without Burden on Government Finances
A key feature of the policy is its revenue-sharing model. The Environment Department will appoint a specialised agency through a transparent RFP process. This agency will handle identification, documentation, registration, and sale of carbon credits in global markets.
Importantly, the government will not incur any upfront costs. While the agency will receive a share of the earnings, the majority of the revenue will flow directly to the Delhi government.
Funds to Go Directly into State Treasury
All proceeds from carbon credit sales will be credited directly to the state treasury and reflected in official financial accounts. The funds will be used to further strengthen environmental protection measures and accelerate development initiatives in Delhi.
With this policy, Delhi takes a significant step toward green governance, proving that environmental protection and economic growth can go hand in hand.
