Delhi Metro earns ₹19.5 cr from sale of 3.55 million carbon credits

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New Delhi, India (Urban Transport News): Delhi Metro Rail Corporation Limited (DMRC) has earned Rs 19.5 crore from the sale of 3.55 million carbon credits, which it collected over a period of six years from 2012 to 2018. DMRC has been a pioneer in quantifying climate change benefits in India. its operation. It has several dedicated debt oriented projects towards energy efficiency.

In 2007, the Delhi Metro became the first metro railway project in the world to be registered by the United Nations under the Clean Development Mechanism (CDM), which enabled the Delhi Metro to claim carbon credits for its regenerative braking project. CDM is a project-based project. The Green House Gas (GHG) Offset Mechanism under the Kyoto Protocol provides the public and private sector in high-income countries the opportunity to purchase carbon credits from projects that reduce greenhouse gas emissions in low- or middle-income countries. International emissions targets under the Kyoto Protocol

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CDM projects generate emissions credits called Certified Emission Reduction (CER), which are then bought and traded. One CER is equal to one tonne of CO2(eq) reduction in emissions. CDM helps deliver sustainable development benefits to the host country. CDM projects are managed by the United Nations Framework Convention on Climate Change (UNFCCC), a body established to combat “dangerous human interference with the climate system”. The first CDM project of Delhi Metro was based on regenerative braking technology. The carbon credits generated from this project till 2012 were sold for Rs 9.55 crore.

The second CDM project is based on the principle of modal shift. The gist of this project is that the carbon footprint of people traveling by metro is much less as compared to similar travel done by other modes of transport. Delhi Metro has so far registered four projects namely Regenerative Braking Project, Modal Shift Project, MRTS PoA Project and Solar Project with UNFCCC, all of which are first of its kind in the world. Furthermore, in 2014, Delhi Metro also became the first metro and railway system in the world to be registered with the prestigious ‘Gold Standard Foundation’, Switzerland, which is also a globally accepted certification standard for carbon mitigation projects. DMRC has so far registered four projects with the Gold Standard Foundation.

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Since 2015, Delhi Metro has also been providing CDM consultancy services to other metro systems in India, enabling them to earn carbon credits from their project. Already Gujarat Metro, Mumbai Metro and Chennai Metro etc. have registered their projects under Program of Activities (PoA) project of Delhi Metro to earn them carbon credits and in compliance with Paris Agreement at the national level of India. Contribute to the Determined Contribution (INDC).

For the period 2012-18, the combined GHG emission reduction achieved from all of the above CDM and Gold Standard projects was 3.55 million carbon credits. Revenue has been generated from the sale of carbon credits earned from CDM and Gold Standard projects in the period 2012-18. 19.5 crores to DMRC. Thus, the total revenue generation from CDM and Gold Standard projects since inception has been INR 29.05 crores.

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There has been a high demand for carbon credits due to global factors such as the implementation of the Paris Agreement, etc. Utilizing this opportunity, DMRC is able to sign and sell all its 3.55 million credits earned during the period 2012-18 to international buyers. Emission Reduction Purchase Agreement (ERPA) for transfer of credit with South Pole, Switzerland; Summit Energy Services, USA and EVI International, Singapore.

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