- The Ministry of Environment has issued a draught notification outlining a proposed ‘Green Credit Scheme’ to give incentives for a variety of environmental activities.
- The scheme’s goal is to incentivize measures like afforestation, water conservation, waste management, and reducing air pollution by allowing individuals and organisations to obtain tradable ‘green credits.’
What exactly is the Green Credit Programme (GCP)?
- GCP will be implemented on a nationwide scale, utilising a competitive market-based strategy to stimulate voluntary environmental measures.
- The plan will promote individual and community behaviours, as well as encourage private-sector firms, businesses, and other entities to meet their existing duties.
- Stakeholders can align with the scheme’s aims by participating in activities that generate or allow the purchase of green credits.
Creating Green Credit Supply and Demand
- The government’s immediate priority is to generate green credits through voluntary initiatives.
- The next stage is to enact laws or regulations that incentivize businesses and organisations to purchase credits, hence increasing demand.
- In contrast to carbon markets, which primarily trade greenhouse gas emissions, the Green Credit Scheme takes into consideration a broader range of behaviours, making it more complex.
Green Credit Generation Sectors
- The notification identifies the following sectors or activities that are eligible for green credit generation:
- Green credit based on tree plantation: Encourages activities that improve green cover through tree planting and related initiatives.
- Green credit for water conservation, water harvesting, efficient water usage, and wastewater treatment and reuse.
- Green credit based on sustainable agriculture: Promotes natural and regenerative agricultural practises, land restoration, and increased productivity, soil health, and nutritional value.
- Green credit for waste management: Encourages sustainable waste management practises and waste handling innovations.
The Scheme’s Uniqueness and Complexity
- When compared to similar efforts around the world, the proposed Green Credit Scheme covers a broader spectrum of actions.
- This programme, unlike prior systems, accounts for a wide range of activities, making its implementation and accounting processes more complex.
Source: https://economictimes.indiatimes.com/industry/renewables/govt-comes-out-with-draft-rules-of-green-credit-programme/articleshow/101338003.cms