Trading of Certificates of Deposit, which are issued on the scrapping of old vehicles will promote circular economy and help cut vehicular emissions, according to an industry expert.
Scrappage of old vehicles can help bring down vehicular pollution by 20-25 per cent, Nitin Chitkara, the CEO of Meta Materials Circular Markets (MMCM), which runs the DigiELV platform, said.
While scrapping of old vehicles will promote circular economy, getting such vehicles off the road will help cut GHG emissions, he added.
MMCM-promoted DigiELV platform was launched last week by Union Minister Nitin Gadkari which will allow trading of Certificates of Deposit (CoD) or ELV certificates.
The trading of such these CoDs will help those who want to scrap their old vehicles but do not want to purchase a new vehicle in near future, Chitkara explained.
Around 4,800 such certificates were traded on DigiELV during the pilot phase, benefiting End of Life Vehicle owners, he added.
