Why in the News?
The Ministry of Environment, Forests and Climate Change (MoEFCC) notified methodology for Calculation of Green Credits (GC) for Tree Plantation Activity” Green Credit Program (GCP) 2023 rules under Green Credit Program (GCP).
- Forest Departments of all States and Union territories are required to identify degraded land parcels under their control to enhance green cover.
- Identified land parcels for plantation must be free from encumbrances and should be at least 5 hectares in size.
About Green Credit (GC):
- Green Credit Program (GCP) is an innovative market-based mechanism designed to incentivize voluntary environmental actions across diverse sectors, by various stakeholders like individuals, communities, private sector industries, and companies.
- It is designed to foster a sustainable lifestyle and environmental conservation as part of the ‘LiFE’ initiative announced by the Prime Minister in United Nations Climate Change Conference of the Parties (COP26).
- Covered Activities: The program encompasses eight key types of activities:
- Tree Plantation
- Water Management
- Sustainable Agriculture
- Waste Management
- Air Pollution Reduction
- Mangrove Conservation and Restoration
- The Indian Council of Forestry Research and Education (ICFRE) is the administrative body responsible for implementing the Green Credit Programme.
- ICFRE instructs Forest Departments to conduct tree plantation within two years.
- These credits can be traded on a dedicated exchange, similar to how carbon credits are traded.
About Green Credit Program (GCP):
- It is an innovative market-based mechanism to incentivise environment positive actions by different stakeholders such as Industries/institutions, State governments, philanthropies.
- The participation to the GCP shall be based on voluntary participation.
- Aim:
- Aligned with the ‘LiFE’-‘Lifestyle for Environment’ initiative, it promotes sustainable living, environmental conservation, and eco-friendly development through grassroots engagement and behavioural changes.
- Encourage industries, companies, and other entities to meet their existing obligations or other obligations (voluntary).
- Established under: “The Environment (Protection) Act, 1986” with MoEFCC as Nodal Agency.
- Governance Structure:
- The GCP’s governance framework is supported by an inter ministerial Steering Committee.
- The Indian Council of Forestry Research and Education (ICFRE) serves as the GCP Administrator, responsible for program implementation, management, monitoring, and operation.
- GCP has established a user-friendly digital platform to streamline Project Registration, Verification and Issuance of Green Credits
