Karnataka Eyes Carbon Monetisation, Selects Kolar for Net-Zero Pilot

The Karnataka government is exploring ways to monetise 130 million tonnes of carbon emissions as part of its efforts to achieve net zero, with Kolar district selected as a pilot to test the strategy before extending it across the state.

Upendra Tripathy, advisor to the Chief Minister on climate change and vice-chairperson of the state’s net-zero task force, said Karnataka generates approximately 170 million tonnes of carbon, of which natural systems absorb 30 million tonnes. The remaining 130 million tonnes need to be addressed through decarbonisation.

Speaking at the Karnataka Policy Forum in New Delhi on Wednesday, Tripathy said the state aims to monetise at least five million tonnes of carbon by 2030. The target could be achieved if 10 companies each reduce emissions by at least 0.5 million tonnes, he said.

The task force, established in July, has selected Kolar to implement the initiative and develop a model that can be replicated in other districts. However, the government has not publicly detailed the specific reasons for choosing Kolar or the complete implementation framework.

Companies, gram panchayats, municipalities and local communities are expected to participate in the initiative. Businesses will be encouraged to reduce emissions, while village and urban local bodies could support grassroots climate action through measures such as tree planting, waste management, water conservation and energy efficiency. The specific responsibilities of each group are yet to be formally outlined.

Karnataka has also pursued renewable energy expansion, energy-efficiency measures, electric mobility and climate action planning. The new initiative seeks to build on these efforts while exploring financial mechanisms to support carbon reduction.

Tripathy highlighted global warming, biodiversity loss and pollution as major challenges, noting that weakening international climate cooperation has increased the importance of state-level action.

The announcement was made at the Karnataka Policy Forum, an initiative of Karnataka Bhawan in association with the PHD Chamber of Commerce and Industry (PHDCCI). Resident Commissioner Sameer Shukla said the forum would host regular discussions involving government representatives, embassies, businesses and experts to review policies and explore new initiatives. He clarified that it would serve as a platform for open discussion rather than lobbying or issuing formal recommendations.