The Green Credit Programme, initiated in October 2023 by the Indian government, is designed to encourage voluntary eco-restoration activities. These activities include tree plantations, rainwater harvesting, and waste management. The programme introduces a market-based approach for generating, trading, and utilizing green credits. Although public sector undertakings (PSUs) have taken the lead in initial commitments, there are ongoing concerns regarding monitoring, equity, and transparency in its implementation.
The Green Credit Programme is an initiative aimed at promoting eco-restoration efforts. Participants can earn and trade green credits in a regulated market, incentivizing environmentally friendly activities.
The programme was launched in October 2023 to stimulate voluntary environmental actions. The Indian Council of Forestry Research and Education (ICFRE) oversees the administration of the programme, developing equivalence formulas for different activities.
As of now, eco-restoration activities have commenced on 3,409 hectares of degraded forest land across 152 parcels throughout India. The largest parcel, covering 974.9 hectares, is located in Gujarat. Major participants include public sector undertakings in oil and coal, such as:
A total of 384 entities, encompassing PSUs, NGOs, and private players, have joined the scheme.
Credits are generated two years after the commencement of eco-restoration activities. Quantification accounts for factors such as vegetation cover, land type, restoration costs, and climatic conditions.
Green credits play a vital role in incentivizing environmental restoration and can be utilized by corporations for CSR compliance, ESG reporting, or to offset forest loss due to development projects. Monitoring will utilize advanced technologies, including Google Earth and satellite data, along with third-party audits to ensure transparency and compliance.
Despite its potential, the programme faces several challenges:
While the scheme claims to generate jobs for local populations, there are fears that it may restrict their traditional access to restored areas, especially if measures like fencing are implemented.
The government aims to finalize equivalence formulas to standardize credits across various activities and expand participation beyond PSUs. Additionally, aligning green credits with India’s domestic carbon market is a priority.
Revised guidelines, expected in April 2024, will broaden the focus of eco-restoration activities to include shrubs, grasses, terracing, and water conservation, moving beyond a sole emphasis on tree plantations.
Q1. What is the Green Credit Programme?
Answer: The Green Credit Programme is a government initiative promoting eco-restoration activities by allowing participants to generate and trade green credits in a regulated market.
Q2. What activities qualify for generating green credits?
Answer: Eligible activities include tree plantations, eco-restoration of degraded lands, rainwater harvesting, soil conservation, waste management, and other environmental measures tailored to specific sites.
Q3. When was the programme launched?
Answer: The programme was launched in October 2023 to encourage voluntary environmental actions across the country.
Q4. Who oversees the programme?
Answer: The Indian Council of Forestry Research and Education (ICFRE) administers the programme and develops equivalence formulas for various activities.
Q5. What are the main challenges of the programme?
Answer: The programme faces challenges such as monitoring issues, potential market speculation, and equity concerns for forest-dwelling communities regarding access to restored lands.
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