Delhi govt. unveils plan to earn revenue from emission cuts

The Delhi Cabinet on Tuesday approved the implementation of a ‘Carbon Credit Monetisation Framework’ through the Department of Environment, paving the way for the government to generate revenue from its green initiatives, the Chief Minister’s Office (CMO) said. 

Under the new framework, Delhi will be able to scientifically measure emission reductions achieved through its environmental projects and convert them into carbon credits for sale in national and international carbon markets. These credits will be earned from initiatives such as the operation of electric buses, plantation drives, solar energy promotion, and improved waste management systems – all of which contribute to lowering carbon emissions. 

Chief Minister Rekha Gupta said the government remained “fully committed” to combating climate change and monetising carbon credits would provide an additional revenue source for development projects. “This will not only promote environmental conservation, but the revenue generated will be deposited into the Consolidated Fund of the State and used for public welfare schemes,” the CMO said in a statement. The move will enhance departmental efficiency and support a cleaner, healthier environment for residents, it added. 

To implement the framework, the Environment Department will select a specialised agency through a transparent tender process. This agency will identify eligible schemes, handle documentation, and complete registration in line with international standards. 

The entire mechanism will operate “on a revenue-sharing model”, meaning the government will incur no upfront expenditure. A portion of the earnings from carbon credit sales will go to the agency managing the process while the larger share will accrue to the State exchequer, the statement said.