Green Credit Programme

Source:  IE

Context: The Green Credit Programme (GCP), launched in 2023, faces criticism for potentially incentivizing forest diversion and promoting plantations on ecologically sensitive lands.

About Green Credit Programme (GCP):

• Launched in: October 2023 (notified under Green Credit Rules)
• Officially unveiled: At COP28 (2023) by Prime Minister of India and UAE President
• Implementing Agency: Indian Council of Forestry Research and Education (ICFRE), Dehradun

• Aim of GCP:

• • Incentivize voluntary environmental actions (afforestation, water conservation, waste management) through tradable green credits.
  • Support Mission LiFE (Lifestyle for Environment) by encouraging eco-friendly practices.
  • Allow industries/entities to use credits for compensatory afforestation and ESG (Environmental, Social, Governance) compliance.

• Key Features:
  • Voluntary Participation: Open to individuals, corporates, and PSUs, allowing diverse stakeholders to contribute to environmental sustainability initiatives.
    • Participation is non-mandatory, encouraging proactive ecological investment aligned with Mission LiFE.
  • Seven Activities Covered: These include tree plantation, water conservation, sustainable farming, waste management, air quality improvement, mangrove protection, and eco-restoration.
  • Tradable Credits: Participants earn green credits for verified eco-actions, which are marketable on a domestic platform.
  • Compliance Use: Credits can be used to fulfill compensatory afforestation obligations under the Forest Conservation Act, 2023 (Van Adhiniyam).
    • They can also help meet Environmental, Social, and Governance (ESG) commitments under SEBI norms.
  • How it works:
    • Registration: Interested entities must apply and register with the Indian Council of Forestry Research and Education (ICFRE).
      • ICFRE acts as the nodal authority for verifying and processing green credit applications.
    • Land Allocation: State forest departments allocate degraded land parcels of at least 5 hectares for green activities.
    • Plantation Drive: After allotment, forest departments execute and maintain plantation efforts using the funds provided.
      • The activity must be completed within two years of approval and payment.
    • Credit Generation: One grown tree equals one green credit, with a minimum density of 1,100 trees per hectare.
      • Credits are validated based on local silvi-climatic suitability and verified by the department.
    • Trading: Generated green credits can be traded on a domestic market to industries and organisations.