Green Credit by my student of India and way forward

Green credit system

1. GREEN CREDIT Tushar Tyagi MBA (Power Management)

2. The Indian PM announced the launch of the Green Climate Initiative or Programme at the inaugural session of the COP-28 in Dubai. Designed to incentivise voluntary environmental actions across diverse sectors, the GCP involves various stakeholders like individuals, farmers, communities, private sector industries, and companies.

3. WHAT IS GREEN CREDIT? Green Credit refers to a unit of incentive provided to individuals and entities engaged in activities that deliver a positive impact on the environment. It is a voluntary program initiated by the government to incentivize various stakeholders in contributing to environmental preservation and sustainable practices. This program is part of the broader 'LiFE' campaign (Lifestyle for Environment), and it encourages and rewards voluntary environmentally-positive actions.

4. The 28th session of theConference of Parties(COP28) on climate change will meet in November end. this year to promote building a climate-resilient world. With all eyes on the deliberations expected to take place, India is already taking rapid strides in line with its commitment to reduce its carbon emissions intensity by 45% by 2030 as per the Paris Agreement. After COP27, a long-term low carbon development strategy towards net zero emissions by 2070 was introduced based on the vision of LiFE i.e., lifestyle for environment which incentivises voluntary environment friendly practices. Thereafter, 2023-24 Union Budget proposed a green credit programme to be notified under the Environment (Protection) Act 1986. More recently, the Ministry of Environment, Forest and Climate Change further notified the green credit rules (Rules) in October 2023.

5. Key Objectives of Green Credit Programme The key objectives of the Green Credit Programme are as follows: The program aims to reward individuals and entities for their positive contributions to the environment . The program encourages and rewards voluntary environmentally-positive actions. It thus promotes a sustainable lifestyle. The program aims to enhance environmental preservation and conservation efforts. The Green Credit Programme acknowledges that environmental activities generating Green Credits may have climate co-benefits. The program establishes a Green Credit Registry and a trading platform. This facilitates the trading of earned Green Credits on a domestic market.

6. Homeowners installing solar panels, rainwater harvesting systems, or implementing energy-efficient upgrades like LED lighting can earn green credits. Companies investing in renewable energy sources, adopting sustainable waste management practices (recycling, composting), or implementing water conservation measures qualify for the program. Public Institutions Government bodies undertaking initiatives such as developing green public transportation systems, constructing energy-efficient buildings, or promoting renewable energy adoption within the community can benefit from the program. Individuals Businesses Organizations WHO CAN PARTICIPATE IN THE GREEN CREDIT PROGRAM: Non-profit organizations involved in afforestation initiatives, environmental education programs, or promoting sustainable agricultural practices can participate.

7. How will the Green Credit System work? The Green Credit System will be administered by the Indian Council of Forestry Research and Education (ICFRE), which will develop guidelines, processes and procedures for the implementation of the programme. The ICFRE will also establish thresholds and benchmarks for each Green Credit activity based on scientific criteria and best practices. The participants of the Green Credit System will have to register themselves with the ICFRE and submit their proposals for generating or buying Green Credits. The ICFRE will evaluate the proposals and approve them if they meet the eligibility criteria. The ICFRE will also monitor and verify the implementation of the approved proposals and issue Green Credits accordingly. The participants will be able to trade their Green Credits on a domestic market platform that will be developed by the ICFRE in collaboration with other stakeholders. The platform will facilitate transparent and efficient transactions of Green Credits among buyers and sellers. The platform will also maintain a registry of all the transactions and provide information on the supply and demand of Green Credits.

8. WHAT ARE THE BENEFITS OF THE GREEN CREDIT SYSTEM? The Green Credit System is expected to have multiple benefits for both the environment and society. Some of the benefits are: It will create a competitive market-based approach to environmental actions, thereby encouraging innovation, efficiency, and cost-effectiveness among participants. It will provide additional incentives for voluntary environmental actions that go beyond compliance with existing regulations or standards. It will enable participants to meet their environmental obligations in a flexible and convenient manner by buying or selling Green Credits as per their needs. It will enhance the environmental reputation of participants by showcasing their contribution to environmental sustainability. It will generate additional income for participants who generate or sell Green Credits, especially for those who belong to marginalized or vulnerable sections of society. It will create awareness and education among participants and society at large about the importance of environmental conservation and restoration. It will support India’s net zero goal of 2070 by reducing greenhouse gas emissions and enhancing carbon sinks.

9. ACTIVITIES COVERED UNDER GREEN CREDIT PROGRAMME The Green Credit Programme encompasses eight key types of activities aimed at enhancing environmental sustainability. These activities include: Tree Plantation: Planting trees to increase green cover and combat deforestation. Water Management: Implementing strategies to efficiently manage and conserve water resources. Sustainable Agriculture: Promoting eco-friendly and sustainable agricultural practices. Waste Management: Implementing effective waste management systems to reduce environmental pollution. Air Pollution Reduction: Initiatives aimed at reducing air pollution and improving air quality. Mangrove Conservation and Restoration: Protecting and restoring mangrove ecosystems for ecological balance.

10. EARNING AND CALCULATION OF GREEN CREDIT: 1. To earn Green Credits, participants need to register their environmental activities through a dedicated website. The activities will then be subject to verification by a designated agency. 2. Based on the agency's report, the administrator will grant the applicant a certificate of Green Credit. 3. The calculation of Green Credit is determined by factors such as resource requirements, scale, scope, size, and other relevant parameters necessary to achieve the desired environmental outcomes. GREEN CREDIT REGISTRY AND TRADING PLATFORM: 1. A critical component of the program is the establishment of a Green Credit Registry, which will help track and manage earned credits. 2. Additionally, the administrator will create and maintain a trading platform, enabling the trading of Green Credits on a domestic market.

11. ADVANTAGES OF THE GREEN CREDIT SYSTEM Promotes sustainable practices and positive environmental actions The Green Credit System incentivizes individuals, organizations, and industries to adopt sustainable practices and undertake positive environmental actions. This can lead to a reduction in greenhouse gas emissions, improved air and water quality, and increased biodiversity. Creates a new economic opportunity The Green Credit System creates a new economic opportunity for entities that generate and trade green credits. This can help to boost investment in sustainable projects and create new jobs. Helps to meet environmental goals The Green Credit System can help India to meet its climate change and other environmental goals. For example, it can help to reduce greenhouse gas emissions, improve air and water quality, and protect forests.

12. CONCERNS REGARDING GREEN CREDIT PROGRAM Verification and Validation Challenges: The process of verifying and validating environmentally-positive actions poses complexity and consumes considerable time. Concerns revolve around the administrative burden placed on both participants and regulatory bodies. Risk of Greenwashing: There is a potential risk that certain participants may partake in greenwashing, wherein they falsely claim environmentally-friendly activities to garner Green Credits without genuinely contributing to environmental conservation. Compatibility with Carbon Credits: While the program aims for independence from carbon credits, concerns arise regarding possible overlaps and the intricate evaluation process between the two categories of environmental credits. Addressing Regional Disparities: The program may encounter difficulties in accommodating regional differences in environmental impact, presenting challenges in establishing uniform credit values for diverse geographical areas.

13. Important Facts and Takeaways The Green Credit System is a pioneering and unique initiative by the Indian government to incentivize voluntary environmental actions by various stakeholders. The Green Credit System has the potential to create a mass movement around environmental positive actions and realize the vision of ‘Mission LiFE’ through pro-planet people and entities. The Green Credit System also aims to complement the domestic carbon market and support India’s net-zero goal of 2070. However, the Green Credit System also faces several challenges in its implementation and operation that need to be addressed carefully and effectively.

14. THANK YOU