Why is it in the News?

The Environment Ministry recently has made significant changes to the Norms of the Green Credit Programme.

What is the Green Credit Programme (GCP)?

• An innovative initiative by the Ministry of Environment, Forest and Climate Change (MoEF&CC).
• Announced under the 'Lifestyle for Environment' (LiFE) movement.
• It aims to establish a market-based mechanism to incentivize voluntary environmental actions by individuals, urban local bodies, communities, and the private sector.

Target Sectors and Stakeholders:

• Designed to encourage voluntary environmental actions across various sectors.
• Engages diverse stakeholders, including individuals, communities, private sector industries, and companies.

Initial Focus Areas:

• Water conservation: Encourages efficient use and management of water resources.
• Afforestation: Promotes tree planting and forest restoration to enhance carbon sequestration and biodiversity.

Programme Implementation:

• The GCP's governance structure is overseen by an inter-ministerial Steering Committee, with the Indian Council of Forestry Research and Education (ICFRE) serving as the program administrator.
• ICFRE manages the implementation, monitoring, and operation of the program.
• A user-friendly digital platform will simplify project registration, verification, and issuance of Green Credits.
• ICFRE, in collaboration with experts, is developing the Green Credit Registry and trading platform to facilitate the registration and trading of Green Credits.
• Entities and individuals must register their activities with the government to earn Green Credits.
• Verification of activities will be conducted by a designated agency, with self-verification available for small projects.

Programme Impact:

• The GCP strives to encourage environmentally beneficial actions by creating tradable green credits through a market-oriented approach.
• These green credits can be traded on a domestic market platform, providing further incentives for positive environmental actions.
• Additionally, if the generation of green credits results in measurable reductions or removals of carbon emissions, they may also qualify for carbon credits.

Programme Adjustments:

• In response to concerns regarding the potential misuse of the GCP for profit-driven tree planting, the government has emphasized the importance of prioritizing ecosystem restoration over mere tree planting.
• Indigenous species will be preferred, and naturally occurring seedlings will be preserved.
• The previous requirement of a minimum of 1,100 trees per hectare to qualify as a reforested area has been revised, with States now tasked to define specific criteria.
• State forest departments will be responsible for the actual implementation of afforestation efforts.