GREEN CREDIT SCHEME - ECONOMY

GREEN CREDIT SCHEME - ECONOMY

News: Centre moots ‘market’ scheme to promote sustainable living

 

What's in the news?

●       The Environment Ministry has issued a draft notification detailing a proposed ‘Green Credit Scheme’ that will incentivize a host of activities to promote sustainable living.

 

Key takeaways:

●       The Green Credit Scheme, the notification says, followed from the principle of LiFE, often articulated by Prime Minister Narendra Modi to “encourage sustainable lifestyles by driving consumer/community towards behavioural changes to incentivize environment-friendly practices.”

●       New scheme will incentivize a host of activities such as afforestation, water conservation, waste management and air pollution mitigation by generating ‘Green Credits’ that can be traded for money.

 

Green Credit Scheme:

Features:

●       A Green Credit Programme is proposed to be launched at national level to leverage a competitive market-based approach for Green Credits thereby incentivizing voluntary environmental actions of various stakeholders.

●       Green Credit Programme will encourage private sector industries and companies as well as other entities to meet their existing obligations, stemming from other legal frameworks, by taking actions which are able to converge with activities relevant for generating or buying Green Credits.

 

Nodal Ministry - Ministry of Environment

 

Implementation:

●       A ‘steering committee,’ of government and private sector representatives will specify the details of implementing the programme.

●       Overall administration of the scheme will be under the Indian Council for Forestry Research and Education.

 

Eight Sectors:

  1. Tree plantation-based Green Credit - to promote activities for increasing green cover across the country through tree plantation and related activities.
  2. Water-based Green Credit - to promote water conservation, water harvesting and water use efficiency/savings, including treatment and reuse of wastewater.
  3. Sustainable agriculture-based Green Credit - to promote natural and regenerative agricultural practices and land restoration to improve productivity, soil health and nutritional value of food produced.
  4. Waste management-based Green Credit - to promote sustainable and improved practices for waste management, including collection, segregation and treatment.
  5. Air pollution reduction-based Green Credit - to promote measures for reducing air pollution and other pollution-abatement activities.
  6. Mangrove conservation and restoration-based Green Credit - to promote measures for conservation and restoration of mangroves.
  7. Ecomark-based Green Credit - to encourage manufacturers to obtain ecomark label for their goods and services.
  8. Sustainable building and infrastructure-based Green Credit - to encourage the construction of buildings and other infrastructure using sustainable technologies and materials.

 

Who are allowed to trade?

●       Individuals and organizations are allowed to generate ‘Green Credits.’ These credits can also be traded for money.

 

Difference from Carbon Markets:

●       Unlike carbon markets, where only greenhouse gas emissions were traded, the Green Credit Scheme was “trickier” as it involved accounting for a wide range of actions.