Introduction to Green Credit Programme UPSC

Welcome to PreCrack! Recently, The Indian Government has updated the guidelines of Green Credit Programme (GCP) which has stocked the Controversy on GCP & its working. You all must be aware of Green Credit Programme which is introduced by Indian Government in 2023 to empower government supported awareness so people can do their best to preserve the environment.

Why is Green Credit Programme in the News – UPSC Current Affairs 2024

The Green Credit Programme is making headlines due to recent updates issued by the Environment Ministry on April 12. These updates modify the programme’s rules, placing a greater emphasis on restoring ecosystems rather than just planting trees.

Complete Details about Green Credit Programme (GCP)

We have added a complete set of details about Green Credit Programme:

What is Green Credit Programme (GCP)?

We can understand the Green Credit Programme in very simple terms. It’s an Initiative that Awards People, Institutions for doing efforts toward preserving and saving environment. These awards are known as credits and these credits are tradable.

Background of GCP

The Background of Green Credit Programme (GCP) starts with it’s Need it India & Indian Government’s efforts toward preserving the Environment:

The Need for GCP:

• Environmental Degradation: India faces several environmental challenges like deforestation, water scarcity, and air pollution. The GCP aims to incentivize actions that improve air and water quality, increase biodiversity, and promote sustainable practices.
• Limited Voluntary Action: While some environmental efforts exist, the GCP aims to encourage broader participation by offering a reward system for positive environmental actions.
• Complementing Existing Programs: The carbon credit system focuses on carbon emissions. GCP offers a broader approach that tackles various environmental concerns.

Launch Timing (October 2023):

The launch coincided with a couple of key events:

• COP 28: Prime Minister Modi announced the GCP during the UN Climate Change Conference (COP 28) held in Dubai in December 2023. This highlighted India’s commitment to environmental action on a global stage.
• Momentum for Sustainability: There’s a growing global movement towards sustainability, and the GCP positions India as a proactive participant.

Important Points to Consider:

• Initial Focus: The program initially targets afforestation (planting trees on degraded lands) and water conservation projects. These areas have a significant impact on India’s environment.
• Future Expansion: The program is expected to encompass a wider range of environmental activities in the future, potentially including waste management and renewable energy.
• Uncertainties: Some experts have raised concerns about potential challenges in implementation, such as ensuring proper verification of environmental benefits and preventing manipulation of the credit system.

Objective of GCP

These are the key objectives of GCP:

1. Incentivize positive environmental actions.
2. Foster a market-based mechanism for environmental incentives.
3. Encourage individuals to participate in environmental conservation efforts.
4. Generate tradable green credits as a form of recognition.
5. Promote eco-conscious practices among industries and entities.
6. Encourage compliance with existing environmental obligations.
7. Facilitate voluntary environmental measures.
8. Create awareness about the importance of environmental conservation.
9. Foster a culture of sustainability and eco-friendliness.
10. Align with the broader goals of the LiFE Initiative for sustainable lifestyles.

Features & Functions of GCP

These are the Key Features & Functions of GCP:

1. Market-Based Mechanism: The Green Credit Programme operates on a market-based mechanism, offering incentives for environmental actions through tradable green credits.
2. Green Credit Generation: Participants in the programme engage in various positive environmental activities to generate green credits, which serve as tangible rewards for their contributions.
3. Diverse Participation: The programme welcomes participation from a wide range of stakeholders, including individuals, industries, and other entities, fostering a collective effort towards environmental conservation.
4. Activity Eligibility: A diverse array of environmental activities are eligible for green credit generation, spanning tree plantation, water management, waste management, and more.
5. Centralized Registration: Participants register their environmental activities through a centralized platform provided by the government’s website, ensuring a streamlined process.
6. Verification Process: Designated agencies conduct thorough verification of registered activities to ensure compliance with programme guidelines and maintain credibility.
7. Issuance of Certificates: Upon successful verification, participants receive green credit certificates as formal acknowledgment of their environmental contributions.
8. Tradable Credits: The green credits earned by participants are tradable on a domestic market platform, allowing for the exchange and utilization of environmental incentives.
9. Compliance Assurance: While encouraging voluntary environmental measures, the programme also reinforces compliance with existing environmental obligations, promoting a balanced approach to conservation efforts.
10. Alignment with LiFE Initiative: The Green Credit Programme is aligned with the broader objectives of the LiFE (Lifestyle for Environment) Initiative, contributing to the promotion of sustainable lifestyles and environmental conservation at large.

Activities Covered Under GCP

Under the Green Credit Programme (GCP), various environmental activities are covered, including:

1. Tree Plantation: Promoting activities aimed at increasing the green cover across the country.
2. Water Management: Encouraging water conservation, water harvesting, water use efficiency, and savings, including wastewater treatment and reuse.
3. Sustainable Agriculture: Supporting natural and regenerative agricultural practices, as well as land restoration to enhance productivity, soil health, and the nutritional value of food produced.
4. Waste Management: Promoting circularity and sustainable practices for waste management, including collection, segregation, and environmentally sound disposal methods.
5. Air Pollution Reduction: Encouraging measures aimed at reducing air pollution and other pollution abatement activities.
6. Mangrove Conservation and Restoration: Supporting efforts for the conservation and restoration of mangroves, vital ecosystems that provide numerous ecological benefits.
7. Ecomark Label Development: Encouraging manufacturers to obtain the ecomark label for their goods and services, indicating their eco-friendliness.
8. Sustainable Building and Infrastructure: Promoting the construction of sustainable buildings and infrastructure using environmentally friendly technologies and materials to minimize environmental impact.

Benefits of GCP

These are the Benefits Under Green Credit Programme:

1. Environmental Conservation: Promotes eco-friendly actions for conservation.
2. Market Incentives: Provides incentives through tradable green credits.
3. Economic Opportunities: Creates investment opportunities in environmental initiatives.
4. Stakeholder Engagement: Engages individuals, industries, and entities collectively.
5. Compliance Support: Helps meet environmental obligations while encouraging participation.
6. Sustainable Development: Fosters eco-conscious practices for sustainable growth.
7. Recognition and Reward: Acknowledges contributions with tradable green credits.
8. Ecosystem Preservation: Supports preservation through tree planting and conservation efforts.
9. Climate Change Mitigation: Contributes to mitigating climate change impacts.
10. Public Awareness: Raises awareness and fosters a culture of sustainability.

How does GCP Work?

We have listed all the steps about ‘How Does Green Credit Programme Works. The Green Credit Programme operates through a structured process:

Step-1: Activity Registration

Individuals or entities register environmental activities with the Administrator electronically through a government website.

Step-2: Verification

Designated agencies verify registered activities, conducting necessary checks and inquiries according to guidelines.

Step-3: Granting Green Credits

Upon successful verification, the Administrator grants green credit certificates to participants.

Step-4: Methodology and Calculation

The Central Government defines the methodology for calculating green credits based on resource equivalence and relevant parameters.

Step-5: Market Mechanism

Green credits, representing positive environmental actions, are tradable on a domestic market platform.

Step-6: Trading Platform

The Administrator establishes a trading platform for buying and selling green credits, ensuring compliance with approved guidelines.

Step-7: Monitoring and Oversight

The Steering Committee monitors programme implementation and recommends measures to stimulate demand for green credits.

Step-8: Auditing

Independent auditors appointed by the Central Government audit programme activities periodically, with audit reports submitted to the Administrator for action.

Step-9: Continuous Improvement

Technical committees provide recommendations for programme improvement and advise on technical matters.

Step-10: Transparency and Reporting

A knowledge and data platform is maintained to provide transparency on activities, achievements, and best practices, facilitating reporting and sectoral progress under the rules.

New Rules & Guidelines for Green Credit Programme

The new rules and guidelines for the Green Credit Programme prioritize ecosystem restoration over tree planting. Issued by the Environment Ministry, these updates modify the initial emphasis on afforestation.

The aim is to incentivize environmental actions through market mechanisms, generating tradable green credits. These changes reflect a commitment to holistic environmental conservation and sustainable practices.

Possible Challenges for Green Credit Programme

These are the possible challenges of GCP, that can be face during its ground implementations:

1. Compliance verification complexity
2. Market volatility risks
3. Low stakeholder awareness
4. Regulatory intricacies
5. Funding limitations
6. Data management challenges
7. Resource allocation complexities
8. Technical expertise gaps
9. Monitoring and reporting hurdles
10. Equity and inclusivity concerns

What is the Controversy about GCP?

The Green Credit Programme (GCP) has sparked controversy due to several reasons:

1. Commodification of Environmental Conservation:

Critics argue that by allowing companies to exchange credits for afforestation, the GCP turns environmental conservation into a commodity, potentially undermining the intrinsic value of conservation efforts.

2. Forest Diversion Concerns:

Critics are concerned that allowing companies to use green credits for compensatory afforestation could lead to easing forest diversion requirements for mining and infrastructure projects, potentially resulting in environmental harm.

3. Ecosystem Impacts:

Planting trees without considering ecosystem diversity could have negative consequences, such as promoting invasive species or disrupting sustainable ecosystems, raising doubts about the effectiveness of the programme in achieving its conservation goals.

4. Carbon Trading Controversy:

The use of green credits for carbon trading raises questions about the accuracy of equating tree planting with carbon sequestration, as well as concerns about transparency and accountability in carbon trading mechanisms.

Government’s Clarifications on Controversy

The government has responded to concerns surrounding the Green Credit Programme by issuing updated guidelines. They clarified that:

1. States will calculate the cost of restoring degraded forest landscapes using new guidelines.
2. The requirement for 1,100 trees per hectare for reforestation has been modified, allowing flexibility based on ecosystem suitability.
3. Preference will be given to indigenous species for restoration efforts.
4. The programme is in a pilot phase, with ongoing efforts to address questions about quantifying credits for shrubs and grasses.
5. Companies cannot fully offset their compensatory afforestation obligations using green credits, only a portion can be claimed.

10 Key Facts about GCP

These are the Key Facts about GCP:

1. Objective: GCP incentivizes environmental actions through market-based mechanisms, generating tradable green credits.
2. Activities Covered: Includes tree plantation, water management, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, ecomark label development, and sustainable building.
3. Administration: Managed by the Indian Council of Forestry Research and Education (ICFRE), serving as the Administrator.
4. Registration Process: Entities register activities with the Administrator electronically via a central government website.
5. Verification: Designated agencies verify registered activities, ensuring compliance with guidelines.
6. Green Credit Issuance: Upon verification, the Administrator grants green credit certificates.
7. Methodology: Central Government notifies methodologies for calculating green credits based on environmental outcomes.
8. Registry: The Green Credit Registry maintains records of issued green credits and activities.
9. Trading Platform: A platform for trading green credits is established, facilitating transactions.
10. Governance: Oversight provided by a Steering Committee and Technical Committees, ensuring effective implementation and monitoring.

FAQs – Green Credit Programme UPSC Questions

Question-1: What is the Green Credit Programme (GCP)?

Answer. GCP incentivizes environmental actions through market-based mechanisms, generating tradable green credits for various conservation activities.

Question-2: Who administers the GCP?

Answer. The Indian Council of Forestry Research and Education (ICFRE) serves as the Administrator of the GCP.

Question-3: What activities are covered under the GCP?

Answer. Activities include tree plantation, water management, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, and more.

Question-4: How can individuals or entities participate in the GCP?

Answer. They can register their environmental activities with the Administrator electronically through a central government website.

Question-5: How are activities verified under the GCP?

Answer. Designated agencies verify registered activities to ensure compliance with guidelines and standards.

Question-6: What are green credits?

Answer. Green credits are units of incentive provided for specific environmental activities that deliver positive impacts.

Question-7: Can green credits be traded?

Answer. Yes, green credits are tradable on a domestic market platform established by the GCP.

Question-8: How are green credits calculated?

Answer. The Central Government notifies methodologies for calculating green credits based on environmental outcomes.

Question-9: What is the role of the Green Credit Registry?

Answer. The Registry maintains records of issued green credits and registered activities, ensuring transparency and accountability.

Question-10: Is the GCP mandatory for industries and companies?

Answer. Participation in the GCP is voluntary, but it encourages industries, companies, and entities to meet environmental obligations through voluntary actions.