[Answered] Outline the key objectives of India’s Green Credit Programme. Critically evaluate the potential benefits and associated criticisms of this scheme, particularly in relation to its impact on environmental sustainability.

Introduction

The Green Credit Programme (GCP), launched by the Ministry of Environment, Forest and Climate Change (MoEFCC) in 2023, is a market-based mechanism designed to incentivize voluntary environmental actions through tradable green credits. The programme was officially unveiled by Prime Minister Narendra Modi at COP28 in Dubai, aligning with India’s Mission LiFE (Lifestyle for Sustainable Environment). However, while the scheme aims to promote sustainable practices, it has also faced criticism for potentially incentivizing forest diversion and undermining ecological integrity.

Objectives of the Green Credit Programme

The GCP seeks to achieve the following key objectives:

1. Promoting Voluntary Environmental Actions – Encouraging individuals, businesses, and industries to undertake eco-friendly initiatives such as afforestation, waste management, and water conservation.
2. Creating a Market for Green Credits – Establishing a tradable credit system that allows entities to purchase green credits to fulfill their environmental, legal, or corporate social responsibility (CSR) obligations.
3. Encouraging Afforestation and Land Restoration – Restoring degraded landscapes through tree plantations, soil conservation, and water harvesting.
4. Strengthening Environmental Accountability – Enabling industries to integrate green credits into compliance mechanisms such as compensatory afforestation and SEBI’s Business Responsibility and Sustainability Reporting (BRSR) framework.
5. Aligning with Climate Commitments – Supporting India’s commitment to achieving net zero emissions by 2070 and restoring 26 million hectares of degraded land by 2030 (as per the UNCCD Bonn Challenge).

Potential Benefits of the Green Credit Programme

The GCP offers several advantages that contribute to environmental and economic sustainability:

1. Enhanced Private Sector Participation – Encourages corporations, industries, and startups to invest in climate-positive actions through an economic incentive model.
2. Afforestation and Ecosystem Restoration – Could help increase forest cover in degraded lands and improve biodiversity. As per GCP progress data (March 2024), 54,669 hectares across 17 states have been earmarked for afforestation.
3. Market-Based Environmental Conservation – Creates a domestic green credit market, reducing reliance on government-funded environmental projects.
4. Integration with Sustainability Frameworks – Companies can use green credits in ESG (Environmental, Social, and Governance) disclosures, promoting corporate accountability.
5. Alignment with International Climate Goals – Supports India’s Nationally Determined Contributions (NDCs) under the Paris Agreement and the UN Sustainable Development Goals (SDGs), especially SDG 13 (Climate Action).

Criticisms and Concerns

Despite its potential benefits, the GCP has raised serious environmental and legal concerns:

1. Risk of Forest Diversion – Critics argue that green credits could be misused to compensate for deforestation, replacing old-growth forests with commercial plantations (Supreme Court, 2024).
2. Threat to Ecological Balance – Open forests and scrublands, which provide unique biodiversity functions, may be converted into monoculture plantations.
3. Lack of Additionality – The scheme mandates afforestation on degraded lands rather than adding non-forest land, contradicting the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 2023.
4. Market Manipulation Risks – Green credits could be purchased by polluters to bypass stricter environmental norms, leading to “greenwashing” (overstated sustainability claims).
5. Uncertain Long-Term Viability – Concerns exist regarding the survival rate of plantations, as seen in past Compensatory Afforestation Programmes where poor monitoring led to high mortality rates of planted saplings.

Way Forward: Strengthening the Green Credit Programme

To ensure the effectiveness of the GCP, the following steps must be taken:

1. Strengthening Legal Safeguards – Green credits must not be used as substitutes for forest diversion compensations.
   2. Scientific Land Restoration – The scheme should prioritize natural forest regeneration rather than monoculture plantations.
2. Transparent Market Mechanisms – Strict regulatory frameworks should be introduced to prevent market manipulation and greenwashing.
3. Community and Indigenous Involvement – Engaging local communities, Gram Sabhas, and forest-dwelling populations can enhance sustainability and ecological integrity.
4. Third-Party Monitoring & Audits – Independent environmental audits should assess plantation survival rates and ecological impact.

Conclusion

While the Green Credit Programme has the potential to mobilize private investment in environmental conservation, its current structure raises concerns about greenwashing, ecological degradation, and market misuse. A scientifically designed, legally robust, and community-inclusive approach is essential to ensure that India’s climate and sustainability goals are met without undermining ecological integrity.