Green Credits: Concept, Rules, and Impact on Environmental Sustainability
The Green Credit Initiative has been conceptualized as a mechanism to incentivize voluntary pro-planet actions, as an effective response to the challenge of climate change. It envisions the issue of Green Credits for plantations on waste/degraded lands and river catchment areas, to rejuvenate and revive natural eco-systems.
This global initiative aims to facilitate global collaboration, cooperation and partnership through exchange of knowledge, experiences and best practices in planning, implementation and monitoring of environment positive actions through programs/mechanisms like Green Credits.
It has been conceptualized as a mechanism to incentivize voluntary pro- planet actions as an effective response, to the challenge of climate change. It envisions the issue of Green Credits for plantations on waste or degraded lands and river catchment areas, to rejuvenate and revive natural ecosystems.
India launched country’s Green Credit Programme - a national initiative to address climate change, sustainability and promotion of eco-conscious practices, in the month of October 2023 to encourage environmentally friendly practices and to take ahead the 'LiFE' - 'Lifestyle for Environment' movement.
It is an innovative market based mechanism designed to incentivize voluntary environmental actions.In the initial phase the programme focuses on two key activities, namely;
- Water conservation
- Afforestation
These two activities will generate credits and can be traded on the green credit platform.GCP is independent of Carbon Credit Trading Scheme where credits are assigned to projects/activities that can reduce greenhouse gases.
Carbon credits are measured in tonnes of carbon dioxide – equivalent and then priced and traded.
People and businesses that wish to offset their emissions can buy these credits and neutralize their carbon foot print.Green credits, on the other hand, can be generated by taking water conservation measures or through plantation.
There is an important point to note here that an environmental activity generating green credit may have climate co-benefits, such as reduction of carbon emissions , the GCP may also get carbon credit from the same activity under the scheme.
Salient Features of Green Credit Rules, 2023
These rules have been issued by the Ministry of Environment, Forest, and Climate Change, GOI. The Indian Council of Forestry Research and Education, an autonomous body of the Ministry of Environment, Forest and Climate Change, Government of India is the Administrator of the programme.
Objectives of Green Credit programme
The green credit programme shall incentivize environmental positive actions through market-based mechanism and generate green credit, which shall be tradable and made available for trading on a domestic market platform.
The green credit will arise from taking measures by a person of any environment activities referred to in sub-rule (2) of rule 4 of Green Credit Rules.
The green credit programme shall encourage industries, companies, and other entities to meet their existing obligations or other obligations under any law for the time being in force, and encourage other persons and entities, to undertake voluntary environmental measures referred to in rule 4 by generating or buying green credit.
Green Credits
The Green Credit program is designed to promote various environmental activities, and these activities include but are not limited to:
- Tree plantation to increase the country’s green cover.
- Water management for conservation, harvesting, and efficient use.
- Sustainable agriculture to promote natural and regenerative practices.
- Waste management to encourage sustainable practices.
- Air pollution reduction measures.
- Mangrove conservation and restoration.
- Ecomark label development to incentivize manufacturers to obtain an ecomark label for eco-friendly goods and services.
- Sustainable building and infrastructure to encourage environment-friendly construction practices.
Conclusion
The Green Credit Programme is a significant step towards promoting sustainable development and addressing climate change challenges. By incentivizing voluntary pro-planet actions, it encourages individuals, industries, and organizations to actively participate in environmental conservation efforts. The programme not only fosters eco-conscious practices but also supports India's commitment to reducing carbon footprints and enhancing green cover. For IAS aspirants, understanding this initiative is crucial, as it reflects the government's policy measures towards sustainability and its alignment with global environmental goals, making it a potential topic for UPSC mains and essay papers.
