Complexities cloud carbon credits in Delhi's EV policy

The proposal is designed to promote the adoption of vehicles without tail-pipe emissions

- Ayaan Kartik & Nehal Chaliawala

The Delhi government is considering awarding carbon credits to buyers of electric vehicles (EV) in the national capital, a move that has sparked scepticism from industry experts because of the complexities involved. The proposal, designed to promote the adoption of tail-pipe emission-free vehicles, is part of the upcoming Delhi Electric Vehicles Policy 2.0.

"Collaboration shall be explored with development banks, carbon asset management enterprises to identify and evaluate various emission offset mechanisms and facilitate trading of carbon credits for the EV owners in Delhi," read the draft of the upcoming policy, which was shared with automakers for comment last month. Mint has seen a copy of the draft.

The thinking is that by avoiding the carbon emissions of traditional vehicles, EVs could accrue credits over their lifespan. These carbon credits could then be sold by EV owners in a secondary market, offering them a potential revenue source that would lower their total cost of ownership for the vehicles.

Emailed queries to Delhi's Transport Department, which is responsible for the EV policy, remained unanswered.