Green Credit Programme (GCP)

Context

India’s Nationally Determined Contributions (NDCs) to the United Nations Framework Convention on Climate Change (UNFCCC) commit to creating an additional carbon sink of 2.5-3 billion tonnes of CO2 equivalent by 2030, through additions to forest and tree cover.¹ Furthermore, India introduced Mission ‘LiFE’ (Lifestyle for Environment) at COP26 to nudge behavioural change and promote environment-friendly, community based action.² In light of these developments, the Ministry of Environment, Forest and Climate Change (MoEFCC) launched the Green Credit Programme in 2023 to take ahead Mission LiFE, and promote eco-conscious practices. 

What is the Green Credit Programme?

The Green Credit Programme (GCP) is a novel market-based mechanism which incentivises voluntary plantation activities around the country through the issue of green credits, which shall be tradable across an under-development market platform.³ Green credits are financial incentives or rewards extended to individuals or organisations under the programme for engaging in tree plantation activities, generating a positive environmental impact. 

Under GCP, individuals and entities can apply to the Indian Council of Forestry Research and Education (ICFRE), an autonomous body under the MoEFCC which serves as the programme’s administrator, to pay for the restoration of forests. Consequent afforestation activities are undertaken by the state forest departments concerned, who are also responsible for communicating the cost of plantation activities. 

Green credits are issued two years after the plantation of trees following a thorough evaluation by the ICFRE. These can then be claimed by financing individuals or organisations.⁴ The programme aims to set up a comprehensive land bank through a dedicated web portal, where degraded forest lands would be registered by forest departments. Individuals and entities would be allowed to finance afforestation activities on these enlisted land parcels, in exchange for green credits. 

The green credits issued can either be used to meet compensatory afforestation requirements under existing forest laws (for organizations diverting forest land for non-forestry purposes), or be utilised for reporting under Environmental, Social, and Governance (ESG) leadership or under Corporate Social Responsibility (CSR). The transfer and accumulation of green credits is recorded with the GCP Registry under the ICFRE, which also oversees the verification of green credits.⁵

Key objectives of the Green Credit Programme

• To augment India’s forest cover
• To develop an inventory of degraded/unutilised land patches under the administration of State Forest Departments which can be suitable for afforestation activities
• To encourage the participation of individuals and corporates in pro-plantation, and environmentally sustainable activities

Who should care?

• Government entities
• Private companies
• Non-government organisations (NGOs)
• Individuals/group of individuals (registered under the Societies Registration Act)