The closure of the Gorai dumping ground has earned the Brihanmumbai Municipal Corporation (BMC) Rs 27 crore by trade of an estimated 31,033 tonnes of carbon credits a year.
While the BMC has already received half of the amount, the balance is expected will be received in a couple of days.
Carbon credits are a key component of national and international emissions trading schemes started to mitigate the effects of global warming.
With this, the Gorai dumping ground becomes the first in India to earn such carbon credits.
The closure of the ground will ensure the release of methane gas at the site. Methane is 21 times more useful than carbon in generation of electricity.
Now, the Asian Development Bank has agreed to purchase the carbon credits from the BMC at 12 euros per credit. The bank compensates any entity, which takes steps to help improve the environment.
Though the city has got the nod for the land filling process at Kanjurmarg, environmentalists,claiming it will involve large-scale destruction of mangroves.