Green Credit

Green Credit (GC) is an incentive unit awarded for participating in eco-friendly activities, promoting sustainability, conservation, and environmental responsibility.

Green Credit

Green Credits Latest News

The Green Credit Programme (GCP), launched by the Ministry of Environment, Forest and Climate Change (MoEF&CC), was rolled out despite concerns from the Law Ministry regarding its legal validity.

What is Green Credit (GC)?

  • Green Credit (GC) is a unit of incentive provided for engaging in environmentally positive activities.
  • These credits can be traded on a dedicated exchange, similar to carbon credits.
  • The Green Credit Programme (GCP) operates under the Environment (Protection) Act, 1986.

 Green Credit vs Carbon Credit

Feature

Green Credit (GC)

Carbon Credit (CC)

Governing law

Environment (Protection) Act, 1986

Energy Conservation Act, 2001

Beneficiaries

Individuals, communities, private industries

Primarily industries and corporations

Objective

Encourages environment-friendly actions like afforestation, water conservation, and sustainable agriculture

Focuses on reducing carbon emissions by setting emission limits

Market mechanism

Can be traded on a domestic exchange

Traded in national & international carbon markets

Climate co-benefits

May qualify for carbon credits, leading to reduced carbon emissions

Cannot be converted into Green Credits

Implementation of the Green Credit Programme (GCP)

  • The Environment Ministry launched the Green Credit Programme (GCP) to enhance forest cover, promote sustainable practices, and incentivize pro-environmental actions.
  • Who can earn Green Credits?
    • Individuals, communities, and industries that engage in eco-friendly activities.
    • Examples include:
      • Afforestation & reforestation
      • Water conservation
      • Sustainable agriculture
  • How does it work?
    • Participants receive tradable Green Credits for their contributions.
    • These credits can be sold to industries that need to fulfill environmental obligations (e.g., compensatory afforestation).
  • Green credits can be traded on a domestic platform, enabling entities to meet their legal obligations, such as compensatory afforestation for industrial projects.
  • Since its launch, 384 entities, including 41 Public Sector Undertakings (PSUs) like Indian Oil Corporation Ltd, Power Grid Corporation of India Ltd, and NTPC Ltd, have registered under the scheme.

Green Credits FAQs

Q1. What is the Green Credit Program?
Ans. It is an initiative by the Indian government to incentivize environmental actions through a market-based credit mechanism.

Q2. How does the Green Credit Program work?
Ans. Entities earn credits for activities like afforestation, water conservation, and waste management, which can be traded or used for compliance purposes.

Q3. What is the difference between Green Credits and Carbon Credits?
Ans. Green Credits cover a broader range of environmental actions, while Carbon Credits specifically address greenhouse gas emissions.

Q4. Which ministry is responsible for the Green Credit Program?
Ans. The Ministry of Environment, Forest, and Climate Change (MoEFCC) oversees the program.

Source: IE

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