Delhi metro earns INR 19.5 crore from sale of 3.55 million carbon credits – pv magazine India
The Delhi Metro Rail Corporation (DMRC) earned commendable INR 19.5 crore from the sale of 3.55 million carbon credits it had collected over a six-year period from 2012 to 2018. DMRC was a pioneer in India in quantifying the benefits of climate change. of its operations. It has to its credit a number of dedicated projects oriented towards energy efficiency.
In 2007, the Delhi Metro became the first metro or railway project in the world to be registered by the United Nations under the Clean Development Mechanism (CDM) which allowed the Delhi Metro to claim credits. carbon for its regenerative braking project. The CDM is a project-based greenhouse gas (GHG) offset mechanism under the Kyoto Protocol, allowing public and private sectors in high-income countries to purchase carbon credits from projects. reduction in greenhouse gas emissions in low- and middle-income countries. as part of their efforts to meet international emissions targets under the Kyoto Protocol.
CDM projects generate emission credits called Certified Emission Reductions (CERs), which are then bought and traded. One CER equals one tonne of reduced CO2 (eq) emission. The CDM helps deliver sustainable development benefits to the host country. CDM projects are managed by the United Nations Framework Convention on Climate Change (UNFCCC), an entity created to fight “dangerous human interference with the climate system”. The Delhi Metro’s first CDM project was based on regenerative braking technology. The carbon credits generated by this project up to 2012 were sold for 9.55 Cr INR.
The 2nd MDP project is based on the principle of Modal Shift. The essence of this project is that the carbon footprint of people traveling by metro is much lower than that of the same journeys made by other modes of transport. Delhi Metro has registered four projects so far, namely Regenerative Braking Project, Modal Shift Project, PoA MRTS Project and Solar Project with UNFCCC, all of which are the first of their kind in the world. Apart from this, in 2014, Delhi Metro also became the first metro and railway system in the world to be registered with the prestigious “Gold Standard Foundation” in Switzerland, which is also a certification standard. globally accepted for carbon mitigation projects. So far, the DMRC has registered four projects with the Gold Standard Foundation.
Since 2015, Delhi Metro has also been providing CDM consultancy services to other metro systems in India, allowing them to earn carbon credits for their project. Already Gujarat metro, Mumbai metro and Chennai metro etc. have registered their projects under the Delhi Metro Program of Activities (PoA) project to earn carbon credits and contribute to India’s Nationally Determined Contribution (INDC) in accordance with the Paris Agreement.
For the period 2012-18, the combined reduction in GHG emissions obtained from all the CDM and Gold Standard projects mentioned above was 3.55 million carbon credits. from INR 19.5 Cr to DMRC. Thus, the total revenue generation from the CDM and Gold Standard projects since the start was 29.05 Cr INR.
There has been a higher demand for carbon credits due to global factors such as the implementation of the Paris Agreement etc. Taking advantage of this opportunity, DMRC was able to sell all of its 3.55 million credits accumulated during the period 2012-18 to international buyers by signing the Emissions Reduction Purchase Agreement (ERPA) for the transfer of credits with M / s. South Pole, Switzerland, M / s. Summit Energy Services, United States and M / s. EVI International, Singapore.