Delhi Government to Reduce Pollution and Generate Revenue: Cabinet Approves ‘Carbon Credit’ Policy

Delhi’s ‘green projects’ to add to the state exchequer through carbon credits: Chief Minister Rekha Gupta

Delhi to emerge as the country’s leading state in leveraging the carbon market: CM Rekha Gupta

New Delhi, January 2026 : Under the leadership of the Chief Minister of Delhi, Smt. Rekha Gupta, the Delhi Government has taken an important and far-sighted decision towards environmental protection and addressing climate change. In the Cabinet meeting of the Delhi Government held on Tuesday at the Delhi Secretariat, approval was granted to the proposal brought by the Department of Environment to implement the ‘Carbon Credit Monetisation Framework’. Under this framework, the Delhi Government will now be able to generate revenue by selling emission reductions achieved through its various green projects in international markets. The proposal was approved under the guidance of Chief Minister Smt. Rekha Gupta and in the presence of the Minister for Environment, Shri Manjinder Singh Sirsa.

Chief Minister Smt. Rekha Gupta said that the Delhi Government is fully committed to combating climate change. The implementation of the Carbon Credit Monetisation Framework will provide the government with an additional source of revenue, thereby 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 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.

The Department of Environment of the Delhi Government informed that this scheme will cover various initiatives being implemented by different departments of the Delhi Government, with the Environment Department acting as the nodal department for the entire process. At present, the Delhi Government is operating 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.

Revenue generation without any government expenditure

According to the Department of Environment, the most significant feature of this scheme is its financial model. Through a transparent tender (RFP) process, the Environment Department will select a specialised agency. This agency will identify which schemes can generate carbon credits, and will also undertake documentation and registration in accordance with international standards. 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.

Funds to be deposited directly into the state exchequer

All revenue generated through this framework will be deposited directly into the ‘Consolidated Fund of the State’ and duly reflected in the financial accounts of the Delhi Government. These funds can be utilised to further strengthen Delhi’s development initiatives and environmental improvement efforts.