Archive · 20 Aug 2025
India Launches Carbon Credit Program for Vehicle Scrapping
A new program in India wants to pay people for getting rid of old cars.
When old cars are scrapped, it helps the environment because the materials can be reused instead of making new ones.
This program gives "carbon credits" to those who scrap their vehicles.
These credits can then be sold to companies, like car makers, who want to reduce their environmental impact.
The program hopes to join the Indian and international carbon markets, potentially earning even more money and helping India meet its climate goals.
A new carbon credit program aims to incentivize vehicle scrapping in India.
Scrapping vehicles avoids carbon emissions by replacing virgin materials.
The program is a joint venture between NCDEX e-Markets Ltd and the MTC group.
Carbon credits from vehicle scrapping could fetch $20-25 per tonne in the global market.
The initiative is working to integrate into the Indian Carbon Market and Article 6.2 of the Paris Agreement.
- Who
- Meta Materials Circular Market (MMCM), NCDEX e-Markets Ltd, MTC group.
- What
- A new carbon credit program incentivizes vehicle scrapping to reduce carbon emissions.
- When
- The first trade of credits is expected within eight months.
- Where
- India
- Why
- To encourage vehicle scrapping and reduce carbon emissions by providing financial incentives.
Current Issues with Vehicle Scrapping
Proposed Solution
Infrastructure Disparity
Current Issues with Vehicle Scrapping
Formal vehicle scrapping facilities require substantial investment to meet de-pollution and environmental standards.
Proposed Solution
The informal sector often disregards environmental protocols and enjoys higher profitability by reselling parts.
- ELV Scrapping Policy Discount
- Discounts on road tax and registration charges
- Carbon Credit Value
- $20-25 per tonne (Global Market)
- MMCM Partnership
- Cercarbano
- Carbon Credit Buyer
- Auto OEMs
- Steel Recovery Emissions Avoided
- 2 tonnes of carbon dioxide per vehicle