Namma Metro: Earning through surplus carbon credits

Bengaluru: Does the Bengaluru Metro Rail Corporation (BMRCL) implementing the Namma Metro project have anything to do with Carbon dioxide? Yes, says Pradeep Singh Kharola, Managing Director of Namma Metro.

To encourage lesser carbon which pollutes the environment, the United Nations had proposed a cap on annual emissions by companies, industries and further introduced carbon credits. One way to make extra bucks, while being environmentally conscious is to sell surplus carbon credits. 'Carbon credit trading' as a concept has not gained much popularity in India and is just a proposal made by the United Nations Framework Convention on Climate Change.

But BMRCL and its project, Namma Metro, claims to have a smaller carbon footprint. "People leave their private cars and bikes to use the Metro. Thus, we have a much lesser carbon footprint compared to other companies and industries. We plan to calculate the carbon credits we have left unused, below the stated limit. These can be sold or traded off with other companies, giving BMRCL some extra non-fare revenue," said Pradeep Singh Kharola, Managing Director of Namma Metro.

"The Metro project falls under 'Clean Development Mechanism' (CDM) projects that reduce greenhouse gas emissions. Once we are done with Phase 1, we will find the exact carbon ratings and sell credits to other industries and projects," Mr. Pradeep added. The good news is that Bengaluru is making some headway by reducing carbon emission and investing in public transport like Metro. BMRCL will also enjoy non fare revenue collection.

Explaining the benefit, naturalist and environmentalist, Ullas Kumar said, " The carbon rating will have to be sent to the Ministry of Environment and Forests (MoEF). The carbon credits can be sold for money, traded for electricity or operate large projects."

The bad news is that  this kind of selling surplus carbon credits (International emission trading),  still does not have a concrete foundation as yet. " There is no fixed cap placed on carbon emission by each industry. Not all countries have agreed to this proposal by the UN. CDM is practiced in the UK and a few other places, but there is no proper Carbon market/bazaar. Trade offs and sales are currently done with an understanding between two parties," Ullas Kumar informed, adding that, the entire Carbon trading system is still on paper.

With respect to Metro, he also opined that it may not be feasible for two reasons.
" The Metro uses a lot of electricity, which means it will have a large carbon footprint. Moreover, calculating carbon ratings for Metro, is done by counting the number of Cars left behind by people, to take the train. Cars cause the most pollution. There are not many parking lots in Bengaluru's metro stations for people to park their cars and board the Metro," Kumar said, further adding, " This is why BMRCL will not be able to count the number of cars unused by people, choosing the metro. Thus, they will not be able to calculate the carbon credits."