Compensatory Afforestation in India – Significance and Challenges – Explained, Pointwise

The Supreme Court of India recently directed the Forest Survey of India to investigate the felling of trees to construct an 11 km road in the Aravallis’ Southern Delhi Ridge sector. This directive followed revelations that tree felling began before the Ministry of Environment, Forest and Climate Change (MoEFCC) granted preliminary permission. SC has ordered Delhi Development Authority (DDA) to plant 100 new trees for every single tree removal, as a compensation. However, it is not a sufficient measure to make up for the forest loss. Therefore, there is a need to analyse the effectiveness of Compensatory Afforestation (CA) in India and the need for stringent environmental protections.

What is Compensatory Afforestation?

Compensatory afforestation (CA) involves planting trees to replace forest land diverted for non-forest uses, such as industrial or infrastructural projects. CA has been made a legal requirement in India through the Compensatory Afforestation Fund Act of 2016. The goal is to mitigate the ecological impact of deforestation by ensuring that new forest areas are created to compensate for the loss.

Compensatory afforestation requires any industry or institution authorized to clear forest land for non-forestry uses to:
a) allocate an equivalent area of non-forest land to forest authorities,
b) fund the reforestation of this newly provided land.
c) The money is first deposited in the Central fund, from where it gets disbursed to states where the projects are located.

This land should ideally be located as close as possible to the original deforested area.

If suitable non-forest land is not available nearby, the entity must then provide twice the area in ‘degraded’ forest land which is land recognized as forest but characterized by very low tree density for afforestation purposes.

What was the need of compensatory afforestation?

Increasing forest diversion: From 2001 to 2021, India experienced a net increase in total forest cover by 38,251 sq. km. However, this growth primarily occurred in open forest areas with a tree canopy density of 10-40%. During the same period, forest cover with a canopy density above 40% decreased by 10,140 sq. km.

Between January 2015 and February 2019, about 54,648 hectares of forest land—an area nearly equivalent to Mumbai’s size—were diverted for non-forest purposes.

National Commitment: India has committed to increasing its forest and tree cover to absorb an additional 2.5 billion to 3 billion tonnes of carbon dioxide equivalent by 2030.

Ecological Balance: Compensatory afforestation (CA) helps maintain ecological balance by restoring forest cover lost due to development projects. For example, tree felling in the Delhi Ridge area for urban development disrupts local ecosystems, and CA aims to mitigate these impacts.

Carbon Sequestration: New plantations help in sequestering carbon dioxide, thereby mitigating climate change. According to the ISFR 2019 report, India’s forest carbon stocks increased to 7124 MtC, highlighting the role of afforestation efforts in carbon absorption.

Evolution of Compensatory Afforestation in India

As per Forest Conservation Act (1980), forest land diverted for non-forest use must be compensated by afforestation on an equivalent area of non-forest land.

In 2002, the supreme court of India in the TN Godavarman Vs union of India ordered the creation of a CAMPA fund. CAMPA was established in 2004, to manage the Compensatory Afforestation Fund (CAF) and act as the custodian of the CAMPA fund.

Compensatory Afforestation Fund Act (2016): The act came into force in 2018.

It established a National Compensatory Afforestation Fund under the Public Account of India.

It established the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) at both national and state levels, to manage the funds collected from industries for compensatory afforestation.

Share of National Fund and state fund in the total fund will be in the ratio of 10: 90.

These Funds will be primarily spent on afforestation to compensate for loss of forest cover, regeneration of forest ecosystem, wildlife protection and infrastructure development.

Forest (Conservation) Rules, 2022: These rules introduced new guidelines for accredited compensatory afforestation, allowing it to be used in place of traditional CA if it meets certain criteria. This includes creating a land bank for compensatory afforestation. The rules make a provision for private parties to cultivate plantations and sell them as land to companies who need to meet compensatory afforestation targets. It aims to streamline the process of obtaining prior approval for using forest land for non-forest purposes​.

Read more – Forest Conservation Rules, 2022

What is the Process of Compensatory Afforestation?

1) When a project requires forest land, the project holder must seek approval from the MoEFCC under the Forest (Conservation) Act, 1980. He must provide details of the land to be diverted and the purpose of the diversion.

2) Project holder must submit a Compensatory Afforestation Plan. It should include identifying equivalent non-forest land for afforestation or degraded forest land for restoration.

3) If the plan is approved by Forest Advisory Committee (FAC), project holder must make financial contributions to the Compensatory Afforestation Fund (CAF). The amount is calculated based on the Net Present Value (NPV) of the diverted forest land.

4) The state forest department is responsible for implementing the afforestation plan for site preparation, planting, and maintenance of saplings. The identified non-forest or degraded forest land is handed over to the state forest department.

5) However, Compensatory Afforestation Fund Management and Planning Authority (CAMPA) oversees the implementation of CA projects.

6) The funds cannot be used for administrative expenses like salaries or office equipment, ensuring that the money is spent directly on ecological restoration.

What are the other initiatives for Afforestation?

Several initiatives have been launched to support compensatory afforestation in India:

National Afforestation Programme (NAP): NAP is a centrally sponsored scheme that aims to regenerate degraded forest areas and increase forest cover through people’s participation.

Green India Mission (GIM): Part of the National Action Plan on Climate Change, GIM focuses on afforestation, reforestation, and restoration of degraded ecosystems. It aims to increase forest and tree cover, improve the quality of forest cover, and enhance biodiversity.

National Afforestation and Eco-Development Board (NAEB): NAEB Established under the Ministry of Environment, Forest and Climate Change (MoEFCC). It works to coordinate and intensify afforestation and eco-development activities, promoting sustainable management of natural resources.

What are the challenges to the effective implementation of Compensatory Afforestation?

Forest Conservation Act 2023: After the exclusion of some of forest types from the protection by forest conservation act 2023, there might not be any need to compensate for the cleaning of such forest areas.

Read More – Forest Conservation Act 2023

Greenwashing: It is a deceptive practice, where an illusion is created that a particular practice is in force for the benefit of environment. According to some experts, compensatory afforestation is also an example of ‘greenwashing’, as it has has legitimised the clearing of forests.

Land Availability:

Finding suitable non-forest land for afforestation is challenging. Often, land is not available in the same region, leading to afforestation in distant areas, which may not compensate for local ecological loss. For example, forest land diverted in Goa is compensated by afforestation in Karnataka, which does not address local ecological imbalances​.

Majority of Indian states have confirmed the unavailability of land banks for planting new forests. In the absence of land, most afforestation is carried over a span of five to ten years, after which the same lands are replanted.

Quality of Afforestation: Monoculture plantations, often used in CA, cannot replicate the biodiversity of natural forests, resulting in ecological imbalances. Studies show that over 70% of CA plantations in 10 states were on forest land instead of non-forest land, violating guidelines​.

Fund Utilization: Despite significant funds, there are issues with efficient utilization. Bureaucratic hurdles and lack of transparency often result in underutilization of resources. By August 2018, Rs. 52,000 crores were lying unused with the central government for CA​.

Monoculture: Native forests are complex natural ecosystems that hosts 30-40 different native species, a relation that developed over a million years. CA is leading to large-scale monoculture, single-variety tree plantations of non-indigenous, commercial species such as eucalyptus and teak, which cannot be compared to a forest.

Implementation Challenges: The process of implementing compensatory afforestation is fraught with challenges. For example, the relocation of communities to make way for CA often leads to social conflicts and displacement of indigenous populations, disrupting their traditional way of life.

Monitoring and Data Accuracy: Monitoring the success of afforestation efforts is often inadequate. A significant portion of data received by the central ministry is incorrect or incomplete, and the survival rates of planted saplings are not consistently tracked. This leads to gaps in understanding the actual impact of CA efforts​.

Reduces participation of local bodies: Furthermore, the CA fund provided for under the act has diminished the authority of gram sabhas and further aid forest departments since the funds generated from diversion of the land (around 660 billion) should have been given to the former but is instead being directed to the latter.

What should be done to make compensatory afforestation in India effective?

Forest Definition: An important element of a sound roadmap for forest regeneration is a redefinition of what is considered a ‘forest’. Its definition should be inclusive that can protect even small patches of tree groups. It is the initial requirement that need project owner to act for environment.

Better Planning and Implementation: Ensure that afforestation projects are well-planned and executed, focusing on ecological balance and biodiversity. For instance, projects should prioritize diverse plantations over monocultures to better mimic natural forests.

Community Involvement: Involve local communities and tribal groups in planning and executing afforestation projects to ensure their livelihoods are protected and enhance project success. The Forest Rights Act recognizes the rights of forest-dwelling communities, which should be upheld in afforestation efforts​.

Monitoring and Evaluation: Implement robust monitoring mechanisms to track the success of afforestation projects and make necessary adjustments. Regular evaluation and reporting can ensure the effectiveness of CA. For example, monitoring should focus not just on the number of saplings planted, but on their survival and growth over time​.

Efficient Fund Management: Streamline fund allocation processes and ensure transparency to utilize available funds effectively. Efficient fund management is crucial for the success of CA projects. Recommendations from environmental experts and reports on fund utilization should be taken seriously to address these issues​.

Compensatory afforestation is crucial for mitigating the environmental impacts of development projects. While it faces challenges, addressing these issues through better planning, community involvement, and efficient fund management can enhance its effectiveness in preserving India’s ecological balance.