GREEN CREDIT PROGRAMME -
ENVIRONMENT
News: Centre tweaks green credit
programme norms
What's in the news?
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Amid concerns that the Green Credit Programme
(GCP), which encourages organisations and individuals to invest in
afforestation project in ‘degraded’ forest lands for ‘green credits,’ may
encourage tree planting for financial gains, the Union Environment Ministry —
the overall coordinator of the programme — has clarified that primacy must be
accorded to restoring ecosystems over merely tree planting.
Green Credit:
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A green credit is a unit of incentive awarded for carrying out actions that have a positive
environmental impact.
Working:
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It works like a reward point for activities such as
tree planting, water conservation,
sustainable agriculture, or pollution reduction.
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Green credits can be traded on a market platform, allowing individuals and organisations
to monetise their environmentally-friendly actions and providing incentives for
others to adopt similar practices.
New Rules Regards Tree
Planting related Green Credit:
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According to the notification, tree plantation for
green credits can now only occur on
degraded land parcels under state or Union Territory control (Degraded land
parcels identified by respective states), encompassing open forests, scrub
lands, wastelands, and catchment areas.
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The minimum
land size for such projects is set at 5
hectares.
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Anyone who wants to get green credits will have to apply to the MoEFCC administrator.
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The administrator then will identify suitable land
and prepare a demand note for the applicant, outlining the costs associated
with plantation and administration.
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The person or entity who wants green credit can
simply pay the required costs associated with plantation and administration.
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The forest department can then undertake the
plantation based on a predetermined management plan.
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It can ensure
completion within two years.
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Once the plantation is complete, the department
issues a certificate to the applicant.
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The MoEFCC then evaluates and verifies the activity
before awarding green credits.
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The number of green credits awarded is directly
linked to the number of successfully grown trees, with a minimum density of 1,100 trees per hectare required for
certification by the department.
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Each successfully grown tree earns the applicant
one green credit.
Linked to Other
Obligation:
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Green credits can be used to fulfil compensatory afforestation requirements
for non-forestry land use or contribute to environmental, social, and
governance (ESG) and corporate social responsibility (CSR) initiatives.
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The credits can also be exchanged for meeting
compensatory afforestation targets.
Concerns Associated with
the Rules:
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This rule is unscientific
and completely ignores the ecological aspects of forests. Referring to open
forests, scrubland, and catchment areas as 'degraded' land parcels are vague.
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Incentivising industrial-scale plantations in such areas will irreversibly alter soil quality, replace local
biodiversity, and may be disastrous for local ecosystem services.
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Degraded land is a piece of land that has lost its
ability to support healthy plant growth and ecosystems. This can happen due to
cutting down too many trees, overgrazing by animals, harmful farming practices,
or extreme weather events.
Further Reference - Green Credit Scheme