ANALYSIS OF THE GREEN CREDIT PROGRAMME’s POLICY TWEAKS

TAG: GS 2: POLITY

THE CONTEXT: Central government tweaks the green credit programme norms.

EXPLANATION:

  • The Green Credit Programme (GCP) aims to incentivize environmental positive actions through a market-based mechanism, with a focus on restoring degraded forest ecosystems.
  • The recent policy tweaks by the Union Environment Ministry seek to clarify and enhance the effectiveness of the program.
  • The Environment Ministry emphasizes the importance of prioritizing ecosystem restoration over mere tree planting for financial gains.
  • This shift underscores the need for holistic approaches to ecosystem management and highlights the program’s commitment to ecological sustainability.
  • Thirteen states have already identified 387 parcels of degraded forest land, covering nearly 10,983 hectares, for restoration under the GCP.
  • The involvement of both public and private entities, including major companies like Indian Oil and Coal India, demonstrates broad support for the initiative.

Operational Mechanisms

  • Under the program, organizations and individuals can invest in afforestation projects on degraded forest lands through the Indian Council of Forestry Research and Education (ICFRE).
  • The planted trees are evaluated after two years, with each tree potentially earning one ‘green credit.’
  • These credits can be utilized for compliance with forest laws or corporate social responsibility requirements.

Tradeability of Green Credits

  • While the current credits are non-tradeable, the program’s future trajectory indicates a shift towards tradability, aligning with market-based principles.
  • Tradable green credits could provide additional incentives for participation and facilitate greater flexibility in meeting environmental obligations.

Guidelines for Restoration

  • The Ministry has issued guidelines for states to calculate restoration costs, allowing flexibility in defining reforestation criteria.
  • This approach acknowledges the diversity of degraded forest landscapes and encourages the use of indigenous species to promote ecosystem resilience.

Challenges and Considerations

  • Several challenges remain, including quantifying the contribution of shrubs and grasses to green credits and determining the equivalence between green and carbon credits.
  • These complexities highlight the need for ongoing refinement and adaptation of the program.

Green Credit Programme (GCP):

  • 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
    • Afforestation
  • 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.

SOURCE: https://www.thehindu.com/news/national/centre-tweaks-green-credit-programme-norms/article68076591.ece/amp/

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