The Central Government has proposed a notification for ‘Draft Green Credit Programme Implementation Rules 2023’. The said notification will be taken into consideration on or after the expiry of a period of sixty (60) days. Objections or suggestions, if any, may be addressed to the Joint Secretary, Ministry of Environment, Forest and Climate Change, Indira Paryavaran Bhawan, Jor Bagh road, New Delhi – 110003, and may be sent to e-mail id: sohsmd-mef@gov.in.
The main objectives of the Green Credit Programme (herein after referred as ‘Programme’) are as follows:
- Create a market based mechanism for providing incentives in the form of Green Credits to individuals, Farmer Producer Organisations, cooperatives, forestry enterprises, sustainable agriculture enterprises, Urban and Rural Local Bodies, private sectors, industries and organisations for environment positive actions.
- Create mass movement around environment positive actions and realise the vision of “Mission LiFE” through pro-planet-people and entities.
The Green Credit Programme presents a promising mechanism to incentivize sustainable practices and eco-friendly activities across various sectors.
Phased and Iterative Approach
To ensure a seamless and effective rollout of the Green Credit Programme, a phased and iterative approach will be adopted. Initially, the focus will be on two to three activities from the sectors identified. These sectors include Tree Plantation-based Green Credit, Water-based Green Credit, Sustainable Agriculture based Green Credit, Waste Management based Green Credit, Air Pollution Reduction based Green Credit, Mangrove Conservation and Restoration based Green Credit, Ecomark based Green Credit, and Sustainable building and infrastructure based Green Credit.
In subsequent phases, more activities will be added from the selected sectors, and additional sectors can be included with the approval of the Central Government. This approach allows for gradual implementation, learning from pilot projects, and making necessary improvements over time.
Methodology of Generating Green Credits
The generation and issuance of Green Credits will be based on specific thresholds and benchmarks for each activity. These thresholds will align with any existing environmental obligations under the law. To ensure fungibility across sectors, the environmental outcomes achieved by any Green Credit activity will be evaluated based on equivalence of resource requirements, scale, scope, size, and other relevant parameters.
Digital processes will be at the heart of the Programme, facilitating self-assessments of eligible Green Credit activities, registration of activities, issuance of Green Credits, performance monitoring, and other relevant procedures. This digital infrastructure will enable transparency, efficiency, and accessibility for all stakeholders.
The Steering Committee and Its Functions
The governance and oversight of the Green Credit Programme will be vested in the Steering Committee. This committee will consist of representatives from concerned Ministries/Departments, domain experts, industry associations, and other relevant stakeholders.
The Steering Committee’s functions include granting approvals for procedures, guidelines, and processes related to the Programme’s implementation, establishing guidelines for Measurement, Reporting, and Verification, and making recommendations to the Central Government regarding activities, sectors to be included, and measures to create demand for the Programme. Additionally, the Committee will review and monitor the Programme’s progress and fulfill any other function assigned by the Central Government.
The Green Credit Programme Administrator and Its Functions
The Green Credit Programme Administrator, operated by the Indian Council of Forestry Research and Education, will be responsible for managing, monitoring, and implementing the Programme. Key responsibilities of the Administrator include:
- Developing guidelines, processes, and procedures for Programme implementation
- Constituting Technical or Sectoral committees to develop methodologies and processes for registration and issuance of Green Credits. Establishing methodologies for equivalence of Green Credits from various activities.
- Accrediting the Green Credit Registry, third-party certifiers, and Green Credit Verifiers.
- Conducting capacity building and outreach activities for stakeholders.
- Issuing digital Green Credits and collecting fees from registered entities.
The Technical Committee and Its Functions
Technical or sectoral committees will be constituted by the Administrator to develop methodologies, standards, and processes for registering Green Credit activities and granting Green Credits. These committees will comprise members from concerned Ministries/Departments and subject matter experts. Their functions include developing methodologies for allocation of Green Credits based on environmental actions and recommending mechanisms for Measurement, Reporting, and Verification.
The Green Credit Registry and Its Functions
The Green Credit Registry, maintained by the Administrator or its accredited agency, will be a standardized electronic database containing data relevant to Green Credit issuance, transfer, and acquisition. Its functions will include registration of entities, accurate accounting of Green Credits, maintaining secure records, establishing linkages with other registries, and complying with the Steering Committee’s directions.
The Trading Platform and Knowledge and Data Platform
The Administrator will establish guidelines for the Trading Platform, and a Trading Service Provider, accredited by the Administrator, will operate it. This platform will facilitate the exchange of Green Credits among stakeholders.
The Knowledge and Data Platform, an online platform, will provide transparency on activities and sectoral progress under the Programme, collating data from the Green Credit Registry and other sources.
Demand Generation for Green Credits
The Green Credit Programme relies on voluntary participation from stakeholders. The Steering Committee will recommend measures to generate voluntary demand for Green Credits in the country.
