Cabinet approves carbon credit monetisation framework
The Delhi Cabinet has approved a proposal regarding the implementation of a carbon credit monetisation framework. The proposed framework aims to systematically identify, quantify, register, and monetise greenhouse gas (GHG) emission reductions generated from various climate and sustainability initiatives being implemented by the Delhi Government.
The move aimed at turning the capital’s ongoing green initiatives into revenue-generating assets for pollution control and climate action.
These initiatives include projects related to electric mobility, renewable energy, solid waste management, urban forestry, water and wastewater management, energy efficiency, and green public transport, among others. Under the framework, the Department of Environment will function as the nodal department and will engage a qualified consultancy/agency through a transparent Request for Proposal (RFP) process.
The selected agency will be responsible for project identification, preparation of technical documentation, registration of projects under approved national and international carbon standards, monitoring, verification, and facilitation of trading of carbon credits.
Environment Minister Manjinder Singh Sirsa said the decision positions Delhi as a frontrunner in carbon markets while creating new funding streams without placing any financial burden on the government. “This framework is a game-changer for Delhi’s environment; we are not only reducing emissions but also converting them into resources for a cleaner future,” Sirsa said.
Under the framework, every verified reduction of one metric tonne of carbon dioxide equivalent from government-led initiatives will generate a carbon credit. These credits can be traded in voluntary or compliance markets through recognised standards such as VERRA, Gold Standard and the Indian Carbon Market. The revenue earned will be earmarked for pollution mitigation, climate resilience and green infrastructure.
Officials said Delhi’s existing programmes will form the backbone of the initiative. These include the rollout of electric vehicles and electric buses, urban forestry and plantation drives, Yamuna River rejuvenation works, solar energy adoption in public buildings, wastewater reuse, waste-to-energy plants and biomining of legacy waste. The government said these initiatives are already cutting emissions and can now unlock additional economic value.
The Department of Environment, Forests and Wildlife will act as the nodal agency to oversee implementation. It will identify eligible projects, put in place monitoring, reporting and verification systems, and facilitate registration and trading of credits. Expert agencies will be engaged on a success-fee basis, meaning they will be paid only from realised revenues, ensuring zero upfront cost to the exchequer.
Sirsa said up to three expert agencies would be empanelled to handle end-to-end activities, including project assessment, documentation, validation, credit issuance and trading strategies. “This model ensures transparency and scalability while building in-house capacity for long-term engagement with carbon markets,” he said.
