Delhi to generate revenue from green initiatives using carbon credit

The Delhi Cabinet on Tuesday (January 13, 2026) approved a proposal for implementation of a ‘Carbon Credit Monetization Framework’ through the Department of Environment, according to the Chief Minister’s Office. 

Under this framework, the Delhi Government will now be able to generate revenue by selling carbon credits achieved through its various green projects in international markets.

Chief Minister Rekha Gupta said that the Delhi government is fully committed to combating climate change and the implementation of the ‘Carbon Credit Monetisation Framework’ will provide the government with an additional source of revenue, which can be used for accelerating development works. 

“This will not only promote environmental conservation, but the revenue generated will also be deposited into the Consolidated Fund of the State and utilised for public welfare schemes. This will enhance the efficiency of various departments and provide citizens with the benefits of a cleaner and healthier environment,” the CMO said in a statement. 

Currently, the Delhi government operates electric buses, undertaking large-scale plantation drives, promoting solar energy, and implementing waste management initiatives, all of which contribute to reducing carbon emissions. 

“Under the new policy, the reduction in pollution achieved through these initiatives will be scientifically measured and registered as carbon credits. These credits can then be sold in national and international carbon markets, enabling the Delhi Government to earn revenue,” the CMO said in a statement. 

Through a transparent tender (RFP) process, the Environment Department will select a specialised agency, which will identify which schemes can generate carbon credits, and will also undertake documentation and registration in accordance with international standards, as per the Delhi government. 

“The entire process will be based on a revenue-sharing model, meaning that the government will not have to incur any expenditure. A portion of the revenue generated will go to the agency, while the larger share will accrue to the government exchequer,” the statement said. 

The Chief Minister further said that through this initiative, the Delhi government is not only leading India’s commitments against climate change, but is also opening new financial pathways for sustainable development. Delhi will now emerge as the country’s leading state to harness the benefits of the carbon market.