India’s Green Credit Program:Boosting Environmental Sustainability

• Recently, the Ministry of Environment and Forests issued updated guidelines for its Green Credit Programme (GCP), focusing on the eco-restoration of degraded forest areas and other environmental actions.

Key Provisions of the New Guidelines

Focus on Eco-Restoration of Degraded Forest Areas:

• The primary focus is to restore degraded forest areas under the GCP. 
• The guidelines suggest using various activities beyond tree plantation for eco-restoration.

Plantation Based on Site Conditions:

• The number of trees to be planted will depend on specific site characteristics, and it may vary based on the conditions at the planting site.

Diverse Activities for Eco-Restoration:

• Eco-restoration is not limited to tree plantations. 
• It also includes other activities such as planting shrubs, herbs, and grasses, as well as soil and moisture conservation, terracing, and rainwater harvesting.

Preference for Indigenous Species:

• The guidelines emphasize the plantation of indigenous species of flora to help maintain the local ecosystem.

Cost Estimates:

• The cost estimates for the restoration work will be categorized under 'Eco-restoration of the identified degraded forests.'

Tree Plantation Deadline:

• The Indian Council of Forestry Research and Education (ICFRE) has instructed forest departments to complete tree plantation within two years.

About Green Credit (GC)

• Green Credit is a unit of incentive provided for environmental activities that deliver a positive impact on the environment. 
• These credits can be traded on a dedicated exchange, similar to carbon credits.

Difference between Green Credit and Carbon Credit

• Green Credit Program (GCP):
  • Operates under The Environment (Protection) Act, 1986, and benefits individuals and communities by encouraging environmentally positive actions like tree plantation and sustainable agriculture.
• Carbon Credit Trading:
  • Governed by The Energy Conservation Act, 2001, primarily benefits industries and corporations, focusing on the reduction of carbon emissions.

About Green Credit Program (GCP)

Market-Based Mechanism for Voluntary Participation

• GCP is designed to incentivize environmental actions through voluntary participation by various stakeholders. 
• It is aligned with the "LiFE" (Lifestyle for Environment) initiative to encourage industries, companies, and entities to meet environmental obligations.

Eligible Activities for Green Credit

• Activities include tree plantation, sustainable agriculture practices, and other environmentally friendly initiatives.

Governance Structure

• An inter-ministerial Steering Committee oversees the GCP.
• The Indian Council of Forestry Research and Education (ICFRE) is the GCP Administrator, responsible for implementation, monitoring, and management.
• Platforms for Project Registration, Verification, and Issuance of Green Credits are established by ICFRE.

Carbon Market and Carbon Trading Mechanisms in India

• India has also introduced other carbon trading mechanisms to promote sustainable practices and regulate emissions.

Carbon Credits Trading Scheme (CCTS) - 2023

• Introduced through amendments in the Energy Conservation (Amendment) Act, 2022, this scheme aims to establish the Indian Carbon Market with two mechanisms:
  • Compliance Mechanism: Mandatory program for energy-intensive industries to set greenhouse gas (GHG) emission intensity targets. 
    • Initially, this includes nine sectors like fertilisers, steel, and petroleum.
  • Offset Mechanism: A voluntary, project-based mechanism for industries not covered under the compliance mechanism.

Perform, Achieve and Trade (PAT) Scheme

• Mandates energy-intensive industries to reduce their specific energy consumption. 
• Industries that exceed their energy-saving targets earn energy saving certificates (ESCerts), which can be traded with others who fall short.

Renewable Energy Certificates (REC) Scheme

• A market-based instrument promoting renewable energy. It facilitates compliance with renewable purchase obligations (RPO). 
• One REC is equivalent to one MWh of electricity generated from renewable sources.