Clean and green technology can be applied to infrastructure projects like Bus Rapid Transit System (BRTS) projects to make it sustainable and more environment friendly. This paper aims at developing a Clean Development Mechanism (CDM) framework for a BRTS project launched in a city in western India. The proposed CDM model was created by calculating the entire carbon footprint of BRTS buses and stations. The idea of lowering CO2 emissions by utilising alternative fuels such as biodiesel has been discussed. Furthermore, the usage of more energy-intensive materials such as cement and steel must be reduced, and more flyash as a partial replacement for cement is advised. Using flyash as an alternative replacement for cement has been shown to reduce CO2 emissions by around 35%. The lower CO2 emission amount would result in savings in costs of roughly INR 957,515 ($14,731), assuming a carbon credit of $6 per MT of CO2 emitted. Furthermore, it has been discovered that using alternative fuels such as biodiesel for running BRTS buses can cut CO2 emissions from 9015 to 5193 tonnes per year.