Green Credit Programme (GCP)

News: The Environment Ministry notified a new methodology on August 29 for tree-plantation credits under the Green Credit Programme (GCP).

About Green Credit Programme (GCP)

• It 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.
• Launched: It was launched in November 2023 at COP28 in Dubai by the Prime Minister of India.
• Operated by: 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.
• Legal basis: The Green Credit Rules have been notified by the Government of India on 12th October 2023 under the Environment Protection Act, 1986.
• Major changes in Rules
  • Award timeline
    • Current provision: Credits are awarded only after 5 years.
    • Earlier provision: Credits could be awarded within 2 years.
  • Canopy density criterion
    • Current provision: A minimum canopy density of 40% is required.
    • Earlier provision: The benchmark was 1,100 trees per hectare.
  • Calculation method
    • Current provision: Credits are calculated using vegetation status, change in canopy density, and the number of surviving trees.
    • Earlier provision: Credits were calculated based on meeting the per-hectare planting density benchmark.
  • Unit of credit definition
    • Current provision: One green credit for each new tree older than 5 years.
    • Earlier provision: The earlier methodology did not specify that one green credit would be awarded per tree older than five years.
  • Verification and evaluation
    • Current provision: Credits are issued after evaluation and verification by designated agencies.
    • Earlier provision: Not expressly specified earlier.
  • Credit tradability and transfer
    • Current provision: Non-tradable and non-transferable. Exception: transfer allowed between a holding company and its subsidiaries.
    • Earlier provision: Market-based trading on a platform was provided.