Government Methodology for Calculating Green Credit (Tree Plantation)
Kartavya Desk Staff
Source: BS
Context: The Environment Ministry released a revised methodology for calculating Green Credit for tree plantation.
About Government Methodology for Calculating Green Credit (Tree Plantation):
• What it is?
• Green Credit is a market-based incentive mechanism under the Green Credit Programme (launched Oct 2023) to reward voluntary eco-friendly actions like tree plantation, mangrove restoration, sustainable farming, water conservation, and waste management. Credits act as measurable rewards for positive environmental outcomes.
• Green Credit is a market-based incentive mechanism under the Green Credit Programme (launched Oct 2023) to reward voluntary eco-friendly actions like tree plantation, mangrove restoration, sustainable farming, water conservation, and waste management.
• Credits act as measurable rewards for positive environmental outcomes.
• Encourage voluntary participation of industries, cooperatives, and communities in ecological restoration. Shift from tree-counting to ecological improvement (survival + canopy density). Link corporate obligations (CSR, afforestation compliance) with long-term ecological benefits.
• Encourage voluntary participation of industries, cooperatives, and communities in ecological restoration.
• Shift from tree-counting to ecological improvement (survival + canopy density).
• Link corporate obligations (CSR, afforestation compliance) with long-term ecological benefits.
• Key Features (2025 notification):
• Credits awarded only after 5 years of restoration, ensuring tree survival and growth. 40% minimum canopy density required for issuance. 1 Green Credit = 1 tree surviving beyond 5 years. Credits are non-tradable & non-transferable, except within holding–subsidiary companies. Can be exchanged once only for compensatory afforestation, CSR compliance, or project-linked obligations; extinguished after use. Verification by designated agencies, with applicant paying a verification fee. Projects initiated under 2024 rules will continue under old provisions.
• Credits awarded only after 5 years of restoration, ensuring tree survival and growth.
• 40% minimum canopy density required for issuance.
• 1 Green Credit = 1 tree surviving beyond 5 years.
• Credits are non-tradable & non-transferable, except within holding–subsidiary companies.
• Can be exchanged once only for compensatory afforestation, CSR compliance, or project-linked obligations; extinguished after use.
• Verification by designated agencies, with applicant paying a verification fee.
• Projects initiated under 2024 rules will continue under old provisions.
• Significance:
• Ensures long-term survival and ecological impact, not just plantation numbers. Encourages quality afforestation and forest restoration on degraded land. Helps companies meet CSR, ESG, and legal compliance through scientifically verified credits.
• Ensures long-term survival and ecological impact, not just plantation numbers.
• Encourages quality afforestation and forest restoration on degraded land.
• Helps companies meet CSR, ESG, and legal compliance through scientifically verified credits.