TRADABLE
GREEN CREDIT - ECONOMY
News: Govt launches tradeable Green Credit
to incentivise eco-friendly actions
What's
in the news?
●
The Government has introduced a special
program where an individual or entity can earn green credit and trade it on a
dedicated exchange.
Key
takeaways:
●
Green Credit refers to a unit of an
incentive provided for a specified activity; delivering a positive impact on
the environment.
●
The initiative aims to encourage
industries, companies and other entities to meet their environmental
obligations.
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 incentivising 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:
- Tree
plantation-based Green Credit - to promote
activities for increasing green cover across the country through tree
plantation and related activities.
- Water-based Green
Credit - to promote water conservation,
water harvesting and water use efficiency/savings, including treatment and
reuse of wastewater.
- 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.
- Waste
management-based Green Credit - to promote
sustainable and improved practices for waste management, including
collection, segregation and treatment.
- Air pollution
reduction-based Green Credit - to promote
measures for reducing air pollution and other pollution-abatement
activities.
- Mangrove
conservation and restoration-based Green Credit
- to promote measures for conservation and restoration of mangroves.
- Ecomark-based Green
Credit - to encourage manufacturers to
obtain ecomark label for their goods and services.
- 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 organisations 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.