Delhi Metro Sets Stage for Large-Scale Carbon Finance in Transportation
The Delhi Metro Rail Corporation (DMRC) has become the first metro and railway system in the world to be registered with The Gold Standard Foundation, serving as a proof of concept for transport systems in developing countries to finance low carbon development.
Delhi Metro’s project, “Energy Efficiency measures in DMRC Phase II stations” was registered with The Gold Standard Foundation based on energy efficiency measures undertaken in 51 station buildings. These measures reside primarily in heating, venting and air conditioning systems, high efficiency lighting, the implementation of sun film, and other energy efficient operating strategies. The result is a tremendous reduction in electrical energy consumption and at least a 25% reduction in CO2 emissions.
Beyond lowering carbon emissions, the project activity is expected to contribute toward India’s Millennium Development Goals. For example, lower energy requirements are designed to reduce thermal air and water pollution and mercury-free lighting is used for healthier soil and better air quality.
Carbon revenues from the project activity will also be directed toward improving the livelihoods of poorer communities. Fixed mandates commit revenue for sustainable development activities in Delhi, including a dormitory, classroom, and playground for homeless children in Tis Hazari, Delhi, a scheme for easy movement of cycle rickshaws from and to metro stations and a shelter for the homeless elderly.
Further benefits toward environmental sustainability are expected to reduce power cuts and fluctuations and provide local employment during installation and ongoing maintenance.
The use of similar energy efficient technologies in future phases of Delhi Metro construction and in upcoming metros in India signals an important technology transfer within the nation and throughout the world.
“The Gold Standard framework has been successfully used in one of the biggest metro systems in India for low carbon development,” says Adrian Rimmer, CEO of The Gold Standard Foundation. “To date, the transportation sector has not been able to adequately access carbon finance either through voluntary or compliance markets. This approval paves the way for other transport systems—not just in developing nations—but also in the developed world to use carbon finance for low carbon development through Gold Standard Certification.”
The Gold Standard Foundation’s Abhishek Goyal, Technical Director for Energy, continues, “We already have a robust framework for certification of outcomes, including greenhouse gas reductions and additional co-benefits at the project level. This is part of our work to develop frameworks for entire sectors like transportation, which would mobilise finance on a much larger scale.”
Delhi Metro is currently working to register additional projects with The Gold Standard.