Green Credit Scheme

What’s in Today’s Article?

• Why in the News?
• What are Carbon Credits?
• What is Green Credits Initiative?
• Features of Green Credits Initiative
• About Green Credit Programme

Why in the News?

• Prime Minister Narendra Modi launched an initiative focusing on generating Green Credits through plantation on degraded wasteland.
• During a high-level event at the ongoing climate talks - COP28 in Dubai (UAE), he highlighted that the Green Credits Initiative surpasses the commercial nature of carbon credits.

What are Carbon Credits?

• Carbon credits, also known as carbon offsets, are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases.
• One credit permits the emission of one ton of carbon dioxide or the equivalent in other greenhouse gases.
• Companies that pollute are awarded credits that allow them to continue to pollute up to a certain limit, which is reduced periodically.
  • Meanwhile, the company may sell any unneeded credits to another company that needs them.
• Private companies are thus doubly incentivized to reduce greenhouse emissions:
  • First, they must spend money on extra credits if their emissions exceed the cap.
  • Second, they can make money by reducing their emissions and selling their excess allowances.

What is Green Credits Initiative?

• In a landmark announcement at the COP28 (1st December 2023), the Indian PM launched the 'Green Credit Initiative,' a pathbreaking program aimed at reshaping global environmental policies.
• He also launched the official portal of the Green Credit Initiative at COP28.

Features of Green Credits Initiative

• This initiative involves creating an inventory of degraded wastelands, which can be utilised for planting by individuals and organisations.
• Participants undertaking environmentally positive actions will receive tradable green credits.
• The entire process, from registration to plantation, verification, and issuance of green credits, will be digitised.
• The portal will collect ideas, knowledge, and experiences related to tree planting and environmental conservation.
• This platform aims to influence global policies, practices, and the demand for green credits.
• The Green Credits Initiative mirrors the Green Credit Programme launched by the Union government in October, 2023.

About Green Credit Programme

• To take ahead the 'LiFE' - 'Lifestyle for Environment' movement announced by the Prime Minister in 2021, the Ministry of Environment, Forest and Climate Change introduced Green Credit Programme (GCP) in 2023.
• GCP is an innovative market-based mechanism designed to incentivize voluntary environmental actions across diverse sectors, by various stakeholders like individuals, communities, private sector industries, and companies.
• The GCP's governance framework is supported by an inter-ministerial Steering Committee.
  • The Indian Council of Forestry Research and Education (ICFRE) serves as the GCP Administrator, responsible for program implementation, management, monitoring, and operation.
• The GCP will cover 8 types of activities:
  • Tree plantation which is meant to promote activities for increasing the green cover across the country.
  • Water management is meant to promote water conservation, water harvesting, and water use efficiency or water savings, including treatment and reuse of wastewater.
  • Sustainable agriculture is meant to promote natural and regenerative agricultural practices and land restoration to improve productivity, soil health, and nutritional value of food produced.
  • Waste management is meant to promote circularity, sustainable and improved practices for waste management, including collection, segregation, and environmentally sound management.
  • Air pollution reduction is meant to promote measures for reducing air pollution and other pollution abatement activities.
  • Mangrove conservation and restoration, which is meant to promote measures for conservation and restoration of mangroves.
• In its initial phase, the GCP focuses on two key activities:
  • Water conservation and
  • Afforestation
• Draft methodologies for awarding Green Credits have been developed and will be notified for stakeholder consultation.
• The Green Credit Registry and trading platform, being developed by ICFRE along with experts, would facilitate the registration and thereafter, the buying and selling of Green Credits.

Q1) What do you mean by Carbon Trading?

Carbon trading, also known as carbon emissions trading, is the use of a marketplace to buy and sell credits that allow companies or other parties to emit a certain amount of carbon dioxide.

Q2) When did first Conference of Parties start?

The COP meets every year, unless the Parties decide otherwise. The first COP meeting was held in Berlin, Germany in March, 1995. The COP meets in Bonn, the seat of the secretariat, unless a Party offers to host the session.

Source: What is the Green Credits scheme, which PM Modi mentioned at COP28 | PIB