KOCHI: The Kochi Water Metro, which is inching towards achieving operational break-even, is eyeing a substantial additional revenue by monetising the carbon credits it earned through its contribution towards the reduction of greenhouse gas emissions.
To facilitate this, the Kerala Water Metro Ltd (KWML) has initiated the process to select a consultant for providing assistance in “validation, registration, verification, issuance and trading of carbon credits.”
“We have floated tenders to select the consultant. The goal is to boost the environmental aspect of the water metro project by certifying its GHG (Greenhouse Gases) emission reductions, and then monetise the carbon reductions in the form of carbon credits,” said a senior KWML official.
Currently, the entity has deployed 18 ferries on five routes: High Court-Fort Kochi, HC-Vypeen, HC-South Chittoor, South Chittoor-Cheranalloor, and Vyttila-Kakkanad. The first phase of the project proposes to connect 38 terminals on 15 identified routes spread across 78km by operating a fleet of 78 fast, electrically-propelled hybrid ferries.“
Our target is to achieve a reduction of 22,800 tonnes of CO2 emissions by the end of the first phase. We have already achieved nearly 20% of the target. The carbon credits will help us earn additional revenue and also establish the KWML as a responsible sustainable transport provider,” the official said.
The credits for GHG reduction are aimed to be claimed from projects either completed after 2017 or under progress or proposed to be developed in the next two years. The consultants need to bear all costs associated with the preparation and submission of the proposals and contract negotiation.
“A carbon credit is a tradable instrument that represents a claim for avoided GHG emissions. While some companies develop carbon credits, the same needs to be purchased by certain other firms who fail to reduce the emissions.
In India, the Carbon Credit Trading Scheme (CCTS), established under the Energy Conservation (Amendment) Act, 2022, allows companies to trade carbon credits,” the KWML official explained.
Carbon credits permit their owners emit a certain amount of CO2 or other GHGs. Any excess credit can be sold, creating an incentive for companies to reduce emissions.
While the KMRL had entered into a pact with EKI Energy Services to develop a carbon credit project, it didn’t materialise.
Meanwhile, the water metro is eyeing operational break-even “in a couple of months”, since launching its service on April 23, 2023, by inching closer to its average daily ridership target of 7,000. Sources said the authorities are targeting `2.5 lakh in daily collection to achieve break-even and expect to achieve it soon when services will be introduced on one more key route – the High Court-Willingdon Island-Mattancherry section – next month.