Delhi is set to implement a ‘Carbon Credit Monetisation Framework' to generate revenue from its green projects. The Delhi government approved the plan in a cabinet meeting held on Tuesday. This initiative will allow Delhi to earn by trading carbon credits generated from its various environmental projects.
The framework will function through the Department of Environment, Forests, and Wildlife. The department will identify, validate, and register projects that reduce emissions across different sectors. It will also develop a system for monitoring, reporting, and verifying emission reductions to ensure data integrity and international auditability. The goal is to enable the seamless issuance and trading of carbon credits via approved platforms.
Delhi's existing green initiatives, including the rollout of electric vehicles, urban forestry, restoration of the Yamuna River, adoption of solar energy, and waste-to-energy plants, will be leveraged to generate tradable carbon credits. Each verified reduction of one metric tonne of CO2 equivalent from these initiatives will result in one carbon credit that can be sold on global markets. This approach creates a new funding source for environmental protection without placing any additional financial burden on the government.
Environment Minister Manjinder Singh Sirsa stated that the framework would allow the city to quantify and certify its achievements under global standards, such as VERRA, Gold Standard, and the Indian Carbon Market. The government aims to establish Delhi as a leader in climate finance, contributing directly to national environmental goals.
The Delhi government is following the examples of other states and cities like Meghalaya, Arunachal Pradesh and Indore. Indore earned ₹50 lakh from 1.70 lakh tonnes of CO2. Meghalaya is earning EUR 40 per tonne for farmers, and Arunachal Pradesh is earning from hydro projects.
The "no-financial-liability model leverages existing green efforts across departments" like the Transport (EV policy and CNG, electric buses), Power (solarisation and energy efficiency), Forests (tree plantation and green cover), Delhi Jal Board (water reuse and wastewater efficiency), and Urban Development (waste management and legacy waste biomining), to unlock untapped economic value while advancing ecological goals. By engaging expert agencies on a success-fee basis, where payment depends solely on realized revenues, Delhi aims to maximize value realization.
