November 22, 2008

Mumbai Metro rail project to earn carbon credits

BL reported that, after Delhi metro rail, it’s the turn of the Mumbai Metro rail project to earn carbon credits. The project will generate 651,938 carbon credits between 2011 and 2020. At the current market price of about INR 1,320, the credits will generate revenue of INR 86.05 crore.

Mumbai Metro One Private Limited, the special purpose vehicle for the project, has submitted a detailed methodology report to the executive board of the United Nations Framework Convention on Climate Change seeking clean development mechanism registration for the project. The proposed methodology is for the transport sector and applicable to project activities that reduce emissions through the construction and operation of urban rail based mass transit systems such as metro, light transit rail, tram and sky trains. The methodology, submitted to the UNFCCC for approval, is currently under review by the UNFCCC panel and a decision would be taken in August 2008.

According to the project design document submitted to the UNFCCC, baseline emission have been established by computing emissions, a passenger would have caused in absence of the project traveling the same origin to destination trip using modes of transport such as walking and cycling, private passenger car, taxis, motorcycles, rickshaws, buses and suburban rail.

Mumbai Metro One has engaged CDM transportation specialist Grutter Consulting of Switzerland to develop the methodology for the project.

Mumbai Metro One Private Limited would be implementing the Versova Andheri Ghatkopar metro corridor in Mumbai. It is a JV formed by Reliance Energy, Veolia Transport of France and Mumbai Metropolitan Region Development Authority. Mumbai Metro One has been given a 35 year concession by MMRDA to develop and operate a rail based mass transit system.