Green Credit Programme
Kartavya Desk Staff
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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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.