Expanding Tree Plantations is Key to India’s Climate Action and Trade Competitiveness

Source: The post Expanding Tree Plantations is Key to India’s Climate Action and Trade Competitiveness has been created, based on the article “Expanding tree cover is crucial” published in “The Hindu” on 30 April 2025. Expanding Tree Plantations is Key to India’s Climate Action and Trade Competitiveness.

UPSC Syllabus Topic: GS Paper3-environment-conservation

Context: India faces rising climate risks and trade pressures due to its carbon-heavy economy. To meet environmental goals and support rural livelihoods, the country must urgently expand tree plantation and carbon sequestration efforts.

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Urgency of Expanding Tree Cover

1. India’s Shortfall in Forest Targets: India’s forest and tree cover is 25.17%, far below the 33% target of the 1988 National Forest Policy. Deforestation, rapid urbanisation, and industrial growth have degraded natural ecosystems.
2. Environmental Role of Tree Plantations: Tree plantations act as carbon sinks. They also improve soil health, recharge groundwater, reduce erosion, and help withstand extreme weather.

Government-Led Afforestation Initiatives

1. Key Policy Measures: The National Agroforestry Policy (2014) and the Trees Outside Forests program promote tree planting on private lands. These aim to reduce pressure on natural forests, restore degraded land, and boost rural incomes.
2. Impact of the Green India Mission: The Green India Mission, under the climate action plan, helped increase forest cover by 0.56% from 2017 to 2021. It focuses on reviving degraded forests and managing them sustainably.

Socio-Economic Benefits of Afforestation

1. Job Creation and Rural Support: Afforestation creates jobs in nurseries, forest care, and agroforestry. It is vital for rural employment.
2. Agroforestry’s Promise: Agroforestry improves soil and raises income. ICAR found it boosts farm earnings by 20–30% through timber, fruits, and medicinal plants.
3. Community Engagement and Support: Governments and NGOs offer financial aid, training, and market access. This builds ownership and long-term participation.

Private Sector Participation in Tree Planting

1. Corporate Social Responsibility Drives: Industries like cement, automobile, and energy are investing in afforestation to offset emissions. Many use these plantations in their carbon credit strategies.
2. Aligning with Global Trade Pressures: The EU’s Carbon Border Adjustment Mechanism from 2026 will tax carbon-heavy imports. With India-EU trade at €124 billion in 2023, Indian exporters must reduce emissions to stay competitive.
3. Carbon Credit Benefits: Large-scale plantations help companies earn credits under frameworks like the Verified Carbon Standard. This is cheaper than buying international carbon credits.

Sustainability as a Competitive Strategy

1. Shift from Compliance to Strategy: Sustainability now offers a market edge. Firms are building green supply chains, using sustainable raw materials, and adopting energy-efficient practices.
2. Market Incentives for ESG Compliance: With global capital favouring ESG principles, Indian industries must adapt to attract investment and retain market access.

Policy Challenges and Recommendations

1. High Carbon Credit Costs: In 2023, EU carbon credits cost €83 per tonne. For Indian businesses, tree planting is a cheaper alternative.
2. Need for a National Carbon Policy: India must build a transparent registry, set rules under Article 6 of the Paris Agreement, and offer financial incentives to attract private investment.

Question for practice:

Discuss how expanding tree plantation can help India address both climate goals and trade challenges.