Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday, 21 July 2025

Delhi's EV carbon credit rollout

 



Complexities cloud Delhi's EV carbon credit rollout

Extract from the article:

The Delhi government is on the cusp of unveiling an innovative angle within its Electric Vehicles Policy 2.0 — the prospect of awarding carbon credits to buyers of electric vehicles (EVs) in the capital city. This initiative is poised to bolster the shift towards tail-pipe emission free modes of transport, aligning with broader national and global efforts to mitigate air pollution and combat climate change.

However, the path to implementing this carbon credit scheme is veiled in complexity. Industry experts voice scepticism regarding the operational feasibility, the mechanism for accurate credit allocation, and the possible unintended consequences arising from the nebulous dynamics of carbon accounting in the EV space. Questions linger about how these credits would be monitored, verified, and traded, casting a shadow of uncertainty over this promising yet intricate policy move.

My Take:

A. Can We Rise to EU Challenge?

"While the Delhi government's recent proposition to award carbon credits to EV buyers may appear groundbreaking, it resonates deeply with ideas I have championed several years ago concerning the creation of a structured Indian Carbon Market. In that early discourse, I underscored the necessity for a well-outlined framework where registered entities could receive incentives based explicitly on their carbon footprint reductions. Back then, I advocated for the CCTS as a foundational body to streamline these processes, foreseeing the hurdles that arise from nebulous policy outlines."

Reflecting on this today, it’s evident that without a concrete, institutionalized monitoring and verification framework like the one I envisaged, such policies risk being symbolic rather than substantive. The current skepticism flagged by experts in Delhi isn’t surprising—it underscores a chronic gap in transforming good intentions into actionable, scalable schemes. Having predicted these bottlenecks, I feel passionately that the government needs to institutionalize carbon credit valuation and trading mechanisms before widespread rollout.

B. Re: Dear Shri Gadkariji, It Is Time to …

"In conversations years prior, I proposed that carbon credits linked to electric vehicles should not only reward end-users but also be tightly connected with OEMs (original equipment manufacturers) and the manufacturing lifecycle itself. I elaborated on an incentive schema where credits could be calculated based on model specifications and monthly dispatches, thereby enabling a direct transfer of benefits from dedicated EV finance funds to manufacturers. This would synergize demand with supply-side incentives, accelerating EV adoption holistically."

Bringing this notion into the present debate, it strikes me that Delhi’s nascent policy of carbon credits for buyers tackles only one side of the equation. The broader ecosystem — including manufacturers and recyclers — merits equal attention. Without incorporating such multi-stakeholder incentives, policy risk remaining fragmented. My hope is the authorities look beyond consumer credits and sculpt a comprehensive carbon credit policy that catalyzes the entire EV value chain.

C. Vehicle Charger cum Carbon Creditor?

"My earlier work passionately advocated for the government to couple subsidies like FAME II with carbon credit incentives specifically for EV two-wheelers, proposing innovative concepts such as charging devices that also double as carbon credit allocators. The crux was to enable owners not just to benefit directly but also to monetize or trade their carbon credits, morphing the transition to electric mobility into a financially rewarding venture."

Today, as Delhi grapples with the intricacies of awarding carbon credits for EV buyers, this blueprint feels strikingly relevant. The challenges stem largely from operational ambiguity and lack of clear benefit channels to end-users. If the government revisits my framework — embedding carbon credit functionality at the charging infrastructure level and facilitating credit trading — it could overcome current complexities and incentivize a rapid adoption curve, especially for the vast two-wheeler market segment that remains underserved.

Call to Action:

To the Honorable Delhi Government and policymakers driving the Electric Vehicles Policy 2.0 — your vision to integrate carbon credits into EV adoption is commendable and timely. However, I urge you to take a holistic approach grounded in robust frameworks for carbon credit monitoring, verification, and trading. Consider expanding incentives beyond mere buyers to include manufacturers, recyclers, and charging infrastructure providers. Collaborate with experts to institutionalize transparent carbon accounting mechanisms that guarantee the credibility of credits awarded. Only through such a comprehensive lens can Delhi’s policy transcend complexity and become a beacon for clean transport innovation nationally and globally.

With regards,
Hemen Parekh

www.My-Teacher.in

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