Green Credit Programme (GCP) – Revised Rules for Tree Plantation

Green Credit Programme (GCP) Latest News

• The Union Environment Ministry has recently notified a new methodology for awarding green credits under the Green Credit Programme (GCP). 
• This replaces the earlier methodology, with significant changes in eligibility, time frame, and use of credits.

Overview of the Green Credit Programme (GCP)

• Launched: In November 2023, at the UN Climate Conference (COP28, Dubai) by the Prime Minister of India.
• Objective: To promote voluntary environmental protection actions such as tree plantation, water conservation, waste management, etc.
• Mechanism: Under GCP, the environment ministry seeks ‘voluntary actions’ from companies, individuals, or groups for environmental protection activities, and awards credits in return.

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Key Changes in Rules

• Awarding of credits:
  • Earlier system: The earlier benchmark awarded green credit subject to a minimum density of 1,100 trees per hectare, within two years of plantation.  It is criticized for not focusing on survival, and quality and density of canopy. 
  • New methodology: 
    • Those who have invested in tree plantation activities will earn green credits on completion of a minimum of five years of restoration activities on degraded forest land.
    • The green credit shall be calculated based on the vegetation status, including the change in the canopy density (after achieving a minimum canopy density of 40%) and the number of surviving trees.
• Tradability of credits:
  • Earlier system: Market-based trading of credits.
  • New methodology: The credit for tree plantation will be non-tradable and non-transferable, except in the case of transfer between the holding company and its subsidiary companies.
• Permissible uses of green credits:
  • Those involved in tree plantation under GCP will still be allowed a one-time exchange of green credit for compensatory afforestation obligations, 
    • To meet corporate social responsibility requirements or 
    • For other legal tree planting obligations. 
  • The credit will cease after exchanging it for compliance with legal obligations.
  • The credit for tree plantation may be used for reporting under environmental, social, and governance (ESG) leadership indicators.

Rationale Behind Changes

• Focus on quality and survival:
  • Moves away from just counting trees per hectare.
  • Emphasizes long-term health of plantations (minimum 5 years).
  • Addresses criticism of government afforestation drives that focus on quantity over survival and canopy quality.
• Focus on credibility:
  • So far, 57,986 hectares of degraded forest land have been registered under GCP, as per government data. 
  • Revised rules expected to improve credibility and long-term sustainability.

Conclusion

• The revised Green Credit Programme marks a shift from tokenistic tree-plantation drives to sustainable ecological restoration with a focus on quality, survival, and canopy growth. 
• Going forward, this approach can strengthen India’s climate resilience, improve biodiversity, and enhance corporate accountability in environmental stewardship.

Source: IE