Green Credits Initiative

Source – This post is based on the article “What is the Green Credits scheme, which PM Modi mentioned at COP28” published in “The Indian Express” on 1st December 2023.

Why in the News?

PM Narendra Modi launched the Global Green Credit Initiative at COP 28 in Dubai.

What is Global Green Credit (GGC) Initiative?

1) The GGC Initiative is conceptualized as a mechanism to incentivize voluntary pro-planet actions, as an effective response to the challenge of climate change.

2) It envisions the issue of Green Credits for plantations on waste/degraded lands and river catchment areas, to rejuvenate and revive natural eco-systems.

3) It aims to facilitate global cooperation and partnership through exchange of knowledge, experiences and best practices in planning, implementation and monitoring of environment positive actions through programs/mechanisms like Green Credits.

What is India’s Green Credit Programme (GCP)?

1) The India’s Green Credits Programme is a market-based mechanism to incentivize voluntary environmental actions across diverse sectors, by various stakeholders like individuals, communities, private sector industries, and companies.

2) It was first announced in the Union Budget 2023-24 and launched by the Environment Ministry in October 2023.

3) Such a market-based system already exists for carbon, at the national as well as international level, that allows trade in carbon credits in which companies or nation can claim carbon credits if they take action to reduce their carbon footprint. These credits can be traded for money. Green Credits programme attempts to replicate this mechanism for other environmental actions, like water conservation or soil improvement.

4) In its initial phase, the GCP focuses on two key activities: water conservation and afforestation.

5) Private companies would buy these green credits as part of their CSR obligations.

6) The Indian Council of Forestry Research and Education (ICFRE) is the administrator of the programme.

UPSC Syllabus – Environment