Green Credit Program ( UPSC Prelims)

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News Context

The Ministry of Environment, Forests, and Climate Change (MoEFCC) has introduced a novel approach for determining Green Credit related to tree planting, as outlined in the Green Credit Rules, 2023, established under the Environment (Protection) Act, 1986.

About Green Credits

Green Credit refers to a single unit of incentive awarded for a particular activity that results in a beneficial effect on the environment. These credits can be exchanged on a specialized platform, akin to the trading of carbon credits. It is important to note that Green Credits are distinct from carbon credits issued under the Carbon Credit Trading Scheme governed by the Energy Conservation Act, 2001.

Green Credit Programme

Revealed by: The Prime Minister during COP28 in December 2023.
 Objective: To encourage environmentally friendly actions and back the Mission LIFE initiative.
 Main Features: Encompasses seven activities, such as tree plantation and waste management.
 Credits can be exchanged on a domestic platform.
 Can be utilized for compensatory afforestation and meeting regulatory requirements.
 Businesses can incorporate credits in ESG disclosures.
 Administering Authority: Indian Council of Forestry Research and Education (ICFRE), Dehradun.
 Eligibility: Each designated land area must be a minimum of five hectares.

Revised Green Credit Calculation Methodology with respect to Tree plantation

Green Credit Claim: Following a period of five years dedicated to the restoration of degraded forest land and reaching at least a 40% canopy density, a claim can be made.
 1 Green Credit is equivalent to 1 new tree that is over five years old.
 Credit Transfer: These credits are non-tradable and non-transferable. They can be exchanged a single time but are not eligible for reuse.

About the Green Credit Program

• It is an innovative market-based mechanism designed to promote voluntary plantation activities for afforestation and water conservation.
 • This initiative is part of the Lifestyle for Environment or LiFE movement.
    o Mission LiFE (2021) is a global mass movement led by India, aimed at encouraging individual and community actions to protect and preserve the environment.
 • It was established under the Environment (Protection) Act, 1986.
 • The Nodal Agency is the Ministry of Environment, Forest and Climate Change (MoEFCC).
 • Objectives:
    o Land Bank Creation: Achieved through the registration of degraded forest lands by Forest departments.
    o Encourage Participation: Involves Government entities, Private companies, NGOs, and Individuals/groups of individuals (registered under the Societies Registration Act).

Activities for which Green Credit is Generated

Tree Plantation, Water Conservation, Sustainable Agriculture, Water Management, Air Pollution Reduction, Mangrove Conservation and Reduction, Ecomark label development, and Sustainable building and infrastructure.