{"id":64357,"date":"2026-01-15T18:16:39","date_gmt":"2026-01-15T12:46:39","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=64357"},"modified":"2026-01-16T11:47:19","modified_gmt":"2026-01-16T06:17:19","slug":"delhi-carbon-credits-revenue","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/15-01-2026\/delhi-carbon-credits-revenue","title":{"rendered":"Delhi to Earn Revenue from &#8216;Carbon Credits&#8217;"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Environment<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Delhi government has announced that it has approved a framework for <strong>carbon credit monetisation.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>The government has not released much details in the public domain regarding the framework or how and when it will be implemented.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Delhi government activities<\/strong> such as operating electric buses, plantation drives, promoting solar energy and waste management, <strong>will be used to generate carbon credits under the new policy.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>The reduction in emissions through these initiatives will be <strong>scientifically measured, <\/strong>registered as carbon credits, and <strong>sold in national and international carbon markets<\/strong> to generate revenue.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>A specialised agency<\/strong> will be selected to handle documentation and registration as per international norms.\n<ul class=\"wp-block-list\">\n<li>The model is based on<strong> revenue-sharing,<\/strong> with no upfront cost to the government.&nbsp;<\/li>\n\n\n\n<li>All proceeds will be deposited in the <strong>Consolidated Fund of the State.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Delhi is one of the pioneers<\/strong> among states to approve such a policy.\n<ul class=\"wp-block-list\">\n<li><strong>Maharashtra <\/strong>has approved one such policy four-five months ago.&nbsp;<\/li>\n\n\n\n<li>This mechanism creates a <strong>direct financial incentive<\/strong> for the government to engage in activities which reduce carbon emissions.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Carbon Markets<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Carbon markets are <strong>trading systems <\/strong>in which <strong>carbon credits are sold and bought.&nbsp;<\/strong><\/li>\n\n\n\n<li>Companies or individuals can use carbon markets to<strong> compensate for their greenhouse gas emissions<\/strong> by purchasing carbon credits from entities that remove or reduce greenhouse gas emissions.<\/li>\n\n\n\n<li><strong>One tradable carbon credit equals one tonne of carbon dioxide <\/strong>or the equivalent amount of a different greenhouse gas reduced, sequestered, or avoided.&nbsp;<\/li>\n\n\n\n<li>When a credit is used to reduce, sequester, or avoid emissions, <strong>it becomes an offset and is no longer tradable.<\/strong><\/li>\n\n\n\n<li>There are broadly<strong> two types of carbon markets: compliance and voluntary.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Compliance markets<\/strong> are created as a result of any national, regional, and\/or international policy or regulatory requirement.<\/li>\n\n\n\n<li><strong>Voluntary carbon markets \u2013 <\/strong>national and international \u2013 refer to the issuance, buying, and selling of carbon credits voluntarily.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Position in the Global Carbon Pricing Landscape<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India is moving towards a <strong>rate-based Emissions Trading System (ETS)<\/strong> with the adoption of the <strong>Carbon Credit Trading Scheme (CCTS) in 2024.<\/strong>\n<ul class=\"wp-block-list\">\n<li>Rate-based ETS refers to a system where total emissions are not capped, but i<strong>ndividual entities are allocated a performance benchmark<\/strong> that serves as a limit on their net emissions.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The national ETS will initially cover <strong>nine energy-intensive industrial sectors.<\/strong><\/li>\n\n\n\n<li>The scheme focuses on <strong>emissions intensity, not absolute emissions caps.<\/strong><\/li>\n\n\n\n<li><strong>Credit Certificates<\/strong> will be issued to facilities that outperform benchmark emissions intensity levels.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"efeff0\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"963\" height=\"270\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-2.webp\" alt=\"delhi to earn revenue from 'carbon credits'\" class=\"not-transparent wp-image-64358\" style=\"--dominant-color: #efeff0; aspect-ratio:3.56687898089172;width:651px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-2.webp 963w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-2-300x84.webp 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-2-768x215.webp 768w\" sizes=\"auto, (max-width: 963px) 100vw, 963px\" \/><\/figure>\n<\/div>\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Carbon Credit Trading Scheme (CCTS)<\/strong><br><br>&#8211; <strong>It involves two key elements:<\/strong> a compliance mechanism for obligated entities (primarily industrial sectors) and an offset mechanism for voluntary participation.\u00a0<br>&#8211; The CCTS aims to incentivize and support entities in their efforts to decarbonize the Indian economy.\u00a0<br>&#8211; CCTS laid the foundation for the Indian Carbon Market (ICM) by establishing the <strong>institutional framework.<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Steps to Strengthen Carbon Market Readiness<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As highlighted during the COP 27, India balances its developmental needs with lower carbon emissions through <strong>Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC) principles.&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>India\u2019s efforts include:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Mission LiFE and the Green Credit Program to promote a sustainable lifestyle.<\/li>\n\n\n\n<li>Creation of the National Steering Committee for the Indian Carbon Market (NSCICM) and the Bureau of Energy Efficiency (BEE) under the Ministry of Power.<\/li>\n\n\n\n<li>Incentives for private sector participation.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As global markets evolve and instruments like CBAM create external pressures, India is aligning its policies to maintain competitiveness while achieving climate goals.&nbsp;<\/li>\n\n\n\n<li>By focusing on emissions intensity rather than absolute caps, India\u2019s rate-based ETS offers a pragmatic and flexible path forward, particularly for an economy balancing development with decarbonization.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/cities\/delhi\/carbon-credit-monetisation-how-new-policy-will-generate-revenue-from-carbon-credits-reduce-emission-10474160\/#:~:text=It%20explained%20that%20the%20policy,when%20it%20will%20be%20implemented.\" target=\"_blank\" rel=\"noopener\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Context<\/strong><\/p>\n<li class=\"ms-5\">Delhi government has announced that it has approved a framework for carbon credit monetisation.\u00a0<\/li>\n<p><\/p>\n<p><strong> About <\/strong><\/p>\n<li class=\"ms-5\">Delhi government activities such as operating electric buses, plantation drives, promoting solar energy and waste management, will be used to generate carbon credits under the new policy.\u00a0 <\/li>\n<li class=\"ms-5\">The reduction in emissions through these initiatives will be scientifically measured, registered as carbon credits, and sold in national and international carbon markets to generate revenue. <\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/15-01-2026\/delhi-carbon-credits-revenue\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-64357","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/64357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=64357"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/64357\/revisions"}],"predecessor-version":[{"id":64402,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/64357\/revisions\/64402"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=64357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=64357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=64357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}