In News:

In a first, the Chhattisgarh state has introduced an innovative plan that connects the ecosystem services of its forests with the Green Gross Domestic Product (Green GDP).

Key Highlights:

Chhattisgarh's Green GDP Initiative:

• First State in India to link forest ecosystem services with Green GDP.
• Forests cover 44% of Chhattisgarh's land area, playing a vital role in climate change mitigation.
• Key forest products (tendu leaves, lac, honey, medicinal plants) contribute significantly to the rural economy.

Green GDP:

• Definition: An adjustment of traditional GDP that accounts for environmental costs like resource depletion and ecosystem degradation.
• Formula:
  • Green GDP = Net Domestic Product (NDP) − (Cost of Resource Depletion + Ecosystem Degradation)
  • NDP = GDP − Depreciation of Produced Assets.

Importance of Green GDP:

• Traditional GDP overlooks the environmental cost, treating activities like deforestation as economic gains.
• Green GDP adjusts for sustainability, ensuring long-term economic growth aligns with environmental preservation.

Global Context & Initiatives:

• SEEA (System of Environmental-Economic Accounting): Developed by the UN to track economic-environment relationships.
• WAVES: World Bank initiative integrating natural capital into national economic accounts.
• Bhutan’s GNH: Emphasizes ecological sustainability in development.

Benefits of Green GDP for Chhattisgarh:

• Promotes sustainable development by integrating economic and environmental goals.
• Climate Change Mitigation: Forests help absorb CO2, playing a key role in carbon sequestration.
• Biodiversity Conservation: Supports sustainable use of resources, preserving ecosystems.
• Cultural Integration: Acknowledges forests' cultural and spiritual importance to local tribal communities (e.g., sacred groves).

Key Features of the Initiative:

• Valuing Ecosystem Services: Includes clean air (CO? absorption), water conservation, and biodiversity.
• Eco-tourism Promotion: Developing jungle safaris and national parks, boosting local employment.
• Scientific Assessments: Employing experts to quantify forest contributions to the economy.

Challenges of Green GDP Framework:

• Valuation Complexity: Difficult to assign monetary value to non-market environmental benefits like biodiversity.
• Data Gaps: Lack of comprehensive data on environmental degradation and resource usage.
• Implementation: Requires significant changes in accounting systems and policymaking.
• Forest Definition: Plantations like oil palm may be counted as forests, misleading environmental assessments.
• Political Resistance: States may manipulate data to secure funding, prioritizing plantations over natural forests.
• Local Integration: Difficulties in involving local bodies like Panchayats due to literacy and awareness gaps.

Future of Green GDP:

• Sustainable Resource Use: Encourages responsible consumption and production, aligning with SDG 12.
• Climate Action: Contributes to the reduction of fossil fuel reliance and promotes renewable energy, aligning with SDG 13.
• Green Investments: Stimulates green technologies and industries, fostering sustainable economic growth (SDG 8).