Green Credit Programme (GCP)

Green Credit Programme (GCP) 

Context: Amid concerns that the Green India Mission (GIM) may incentivize tree planting solely for financial gains, the Union Ministry of Environment, Forest and Climate Change (MoEFCC) has issued guidelines that states must use to 
calculate the cost of restoring a degraded forest landscape. 

About: 
o Introduction of Green Credit Initiative: The Green Credit Initiative (GCI) was launched by the Indian Prime Minister on the sidelines of COP 28 held in 2023 at Expo City, Dubai, UAE. It is part of the government\'s Lifestyle for 
Environment (LiFE) movement, introduced at COP26 in 2021, aimed at promoting mindful and deliberate utilization to protect and preserve the environment. 
o Objectives of the Green Credit Initiative (GCI): The GCI introduces a market-based approach to incentivize specific environmental activities, enabling participants to earn incentives in the form of \'Green Credits.\' The initiative is implemented in phases, with the initial phase focusing on water management and afforestation, followed by sustainable agriculture, waste management, air pollution reduction, mangrove conservation, eco mark label development, and sustainable building and infrastructure. 
o Green Credit Rules, 2023: The Green Credit Rules were notified on October 12, 2023, under the Environment Protection Act, 1986. These rules establish a mechanism to encourage voluntary environmental actions that result in the issuance of green credits. In the initial phase, voluntary tree plantation is emphasized on degraded and wasteland areas under the control of Forest departments. 
o Implementation of the Green Credit Program (GCP): Implementation of the GCP involves the participation of forest departments across 13 states, offering 387 land parcels covering nearly 10,983 hectares of degraded forest land. Interested individuals and companies can apply through the Indian Council of Forestry Research and Education (ICFRE), an autonomous body of the Ministry of Environment, Forest and Climate Change (MoEFCC), to pay for the restoration of these forests. The actual afforestation will be carried out by State Forest departments. 
o Issuance and Use of Green Credits: Two years after planting, each tree will be evaluated by the ICFRE and could be worth one \'green credit.\' These credits can be utilized by financing organizations in two ways: to comply with forest laws requiring recompense for diverted forest land or to report under environmental, social, and governance norms and meet corporate social responsibility requirements.