TAG: GS 3: ECOLOGY AND ENVIRONMENT
THE CONTEXT: Recently, during a high-level event at the ongoing climate talks in COP28 in Dubai, India highlighted that the Green Credits Initiative surpasses the commercial nature of carbon credits.
- India presented the concept at COP28 to create a global market for green credits.
- It aimed to establish an international marketplace analogous to the existing carbon credit market.
GREEN CREDIT PROGRAM (GCP): INCENTIVIZING ENVIRONMENTAL ACTIONS:
- Green Credit Program (GCP) has been notified on 13th October 2023.
- The Green Credits Programme (GCP) is an initiative launched by the Ministry of Environment, Forest and Climate Change (MoEFCC) in India.
- It is an innovative market-based mechanism designed to incentivize voluntary environmental actions by generating and trading green credits across diverse sectors, by various stakeholders like individuals, communities, companies etc.
- Green credits are tradable units that represent a specified environmental activity and its positive impact on the environment.
- 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.
- In its initial phase, the GCP focuses on two key activities:
- Water conservation and
- Draft methodologies for awarding Green Credits have been developed and will be notified for stakeholder consultation.
- These methodologies set benchmarks for each activity/process, to ensure environmental impact and fungibility across sectors.
- The Green Credit Registry and trading platform, being developed by ICFRE along with experts, would facilitate the registration and thereafter, the buying and selling of Green Credits.
- The Administrator will grant a Green Credit certificate which will be tradable on the green credit platform.
- Green Credits Programme seeks to expand incentives beyond carbon emission reductions.
- It intends to create a diverse market for environmental actions, benefiting communities and individuals while complementing existing carbon credit systems.