Tamil Nadu is actively pursuing opportunities in the carbon market to secure funding for its climate action projects. According to Supriya Sahu, Additional Chief Secretary of the Department of Environment, Climate Change and Forests, the state is prioritizing initiatives where private sector participation is feasible. These projects include creating new mangrove areas, restoring degraded mangrove patches, and ensuring green job creation for local communities. Additionally, the government aims to register these projects for carbon credits. The Government of India’s carbon credit framework provides the necessary structure for this process. Carbon markets serve as platforms for trading greenhouse gas emission credits, enabling governments and non-state actors to participate. Tamil Nadu holds a unique advantage with its extensive coastline of 1,076 km and 14 coastal districts, presenting significant potential for blue carbon credit generation. Blue carbon credits are derived from the carbon sequestration capabilities of coastal ecosystems like mangroves and seagrass beds. The state government has recognized this opportunity and plans to establish a Blue Carbon agency. Partnership projects for agroforestry expansion on 8,000 sq km and forest land restoration on 4,500 sq km are also being explored. The Wetland Mission, which aims to restore 100 wetlands, is a long-term project that will involve the restoration of five to six wetlands annually. Industries are encouraged to collaborate with the state government in increasing mangrove cover and reducing pollution. To promote sustainability, the Tamil Nadu Pollution Control Board is developing a website for industries to register, submit data, and undergo a rating process for green certification. Tamil Nadu stands out as the only state in the country to establish a Green Climate Fund, amounting to ₹1,000 crore. The Tamil Nadu Infrastructure Finance Management Corporation manages this fund and is responsible for selecting industries and corporates for funding allocation. Moreover, an additional ₹1,000 crore fund has been allocated for the Green Shoe Option, which is currently being operationalized. Kavin Kumar Kandasamy, CEO of ProClime, emphasized Tamil Nadu’s commitment to utilizing the carbon market to further its greening and low-carbon aspirations. The carbon market offers an alternative funding source for climate projects, enabling the state to make progress towards its sustainability goals.
Tamil Nadu Set to Utilize Carbon Market for Climate Action Initiatives
