The Ministry of Environment and Forests, Govt. of India has introduced a land mark initiative called the Green Credit Programme. This program aims to incentivize environmentally conscious practices and promote a sustainable lifestyle known as ‘LiFE’ (Lifestyle for Environment). In a recent notification, the government released the “draft Green Credit Programme Implementation Rules 2023” to lay the foundation for this innovative scheme. The Green Credit Programme presents an opportunity to foster positive environmental actions and create a market-based mechanism for rewarding individuals, organizations, and industries.
Objective of the Green Credit Programme: The main objective of the Green Credit Programme is to establish a market-based mechanism that provides incentives in the form of Green Credits. These credits will be awarded to individuals, Farmer Producer Organisations, cooperatives, forestry enterprises, sustainable agriculture enterprises, Urban and Rural Local Bodies, private sectors, industries, and organizations for their environment-positive actions. The government aims to encourage and promote sustainable practices across various sectors through the use of Green Credits.
Incentivizing Positive Environmental Actions: The Green Credit Programme not only aims to incentivize individual and community behavior but also encourages private sector industries, companies, and other entities to meet their existing obligations from other legal frameworks. By aligning their actions with activities relevant to generating or purchasing Green Credits, these entities can contribute to environmental sustainability while fulfilling their obligations. This integrated approach ensures that both individual efforts and corporate initiatives are rewarded, fostering a culture of environmental responsibility.
Tradable Green Credits: Green Credits serve as tradable outcomes and incentives within the programme. These credits provide tangible rewards for voluntary environmental actions taken by various stakeholders. By participating in activities that positively impact the environment, individuals, organizations, and industries can earn Green Credits, which can then be traded on a domestic market platform. This creates a dynamic system where environmental stewardship is recognized and valued.
Phased and Iterative Implementation: The Green Credit Programme will be implemented through a phased and iterative approach. In the initial phase, two to three activities from specific sectors will be selected for designing and piloting the programme. This approach allows for careful evaluation, refinement, and expansion of the programme over time. Subsequent phases will see the addition of more activities from the selected sectors, with the possibility of incorporating new sectors as approved by the central government. This flexible implementation strategy ensures the programme’s adaptability and effectiveness.
Sectors and Objectives: The Green Credit Programme identifies several sectors for incentivizing environment-positive actions. Each sector has specific objectives that contribute to overall sustainability:
1. Tree Plantation-based Green Credit: This sector aims to promote activities that increase the green cover across the country through tree plantation and related endeavors. By encouraging tree planting initiatives, the programme supports biodiversity conservation, carbon sequestration, and ecosystem restoration.
2. Water-based Green Credit: Water conservation, water harvesting, and efficient water use are the primary objectives of this sector. The programme incentivizes practices that promote water sustainability, including the treatment and reuse of wastewater. By addressing water scarcity and promoting responsible water management, the programme contributes to overall environmental resilience.
3. Sustainable Agriculture-based Green Credit: This sector focuses on supporting natural and regenerative agricultural practices and land restoration. By promoting sustainable farming methods, soil health improvement, and the production of nutritious food, the programme aims to enhance agricultural productivity while minimizing environmental impact.
4. Waste Management-based Green Credit: The programme aims to promote sustainable waste management practices, including effective collection, segregation, and treatment of waste. By incentivizing responsible waste management, it encourages the reduction of landfill waste, the adoption of recycling initiatives, and the proper disposal of hazardous materials.
5. Air Pollution Reduction-based Green Credit: This sector aims to promote measures for reducing air pollution and other pollution abatement activities. By incentivizing actions that contribute to cleaner air, such as the adoption of clean energy sources, emission reduction technologies, and pollution control measures, the programme addresses a significant environmental challenge.
6. Mangrove Conservation and Restoration-based Green Credit: Recognizing the importance of mangrove ecosystems, this sector encourages measures for their conservation and restoration. Mangroves play a crucial role in coastal protection, carbon sequestration, and supporting diverse marine ecosystems. By incentivizing mangrove conservation and restoration activities, the programme contributes to the preservation of coastal biodiversity and the protection of vulnerable coastal communities.
7. Ecomark-based Green Credit: This sector aims to encourage manufacturers to obtain the Ecomark label for their goods and services. The Ecomark label signifies products that meet specific environmental standards and exhibit sustainable production practices. By incentivizing Ecomark certification, the programme promotes sustainable consumption and production patterns.
8. Sustainable Building and Infrastructure-based Green Credit: The programme encourages the construction of buildings and infrastructure using sustainable technologies and materials. By incentivizing the adoption of energy-efficient designs, renewable energy integration, and environmentally conscious construction practices, the programme contributes to the development of greener urban landscapes.
Issuance and Trading of Green Credits: The government has outlined the process for the issuance and trading of Green Credits. Benchmarks will be developed for each Green Credit activity, ensuring transparent and fair evaluation of environmental impact. Digital processes will be established to facilitate various aspects of the programme, including self-assessments of eligible activities, registration, issuance of Green Credits, and performance monitoring. These digital systems ensure efficiency, accuracy, and accessibility throughout the programme.
Climate Co-benefits and Carbon Credits: An environmental activity generating Green Credits may have climate co-benefits, such as carbon emissions reduction or removal. The Green Credit Programme recognizes this and enables activities that generate Green Credits to be eligible for Carbon Credits in the carbon market. The carbon market provides a platform where emission reductions and removals can be converted into tradable assets. Industrial units that exceed emission criteria can receive credits, incentivizing emission reduction and improved energy efficiency. The carbon credit aspect further contributes to India’s commitment to reducing carbon emissions and aligning with international climate goals.
To sumup, the Green Credit Programme introduced by the Ministry of Environment and Forests is a transformative initiative that promotes sustainability, incentivizes positive environmental actions, and fosters a culture of environmental responsibility. By providing tradable Green Credits and acknowledging climate co-benefits, the programme creates a dynamic framework for individuals, organizations, and industries to actively contribute to a greener future. With a phased and iterative implementation approach, the programme is poised to evolve, expand, and drive significant environmental change, supporting India’s commitment to a sustainable and resilient future.