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Source– This post on Supreme Court judgment on Forests as a national asset is based on the article “Forests a national asset and major contributor to financial wealth: SC” published in “The Hindu” on 19th April 2024.
Why in the News?
Recently, in a judgement the Supreme Court has asserted that forests in India are a national asset and a major contributor to the nation’s financial wealth.
About the judgement
1. This judgment is particularly relevant given the ongoing controversy surrounding the Forest Conservation (Amendment) Act of 2023 (FCAA)
2. Highlighting the role of forest, the court held that concepts of carbon credit and green accounting to evaluate a nation’s wealth had become a reality.
3. A country with surplus forest cover can sell its additional carbon credits to those lacking in forests. This underlines the significance of forests in contributing to the financial wealth of a country.
4. The judgment said India’s forests serve as a major sink of carbon dioxide (CO2).
The value of mitigation has put a conservative value of $5 per tonne of CO2 locked in our forests, this huge sink of about 24,000 mt of CO2 is worth $120 billion, or ₹6 lakh crores.
Protective role of forests against climate change
1. The court referred to a 2022-2023 report of the Reserve Bank of India on the macroeconomic impact of climate change and changing patterns of rainfall.
2. These factors could cost the economy 2.8% of its GDP and depress the living standards of nearly half of its population by 2050.
UPSC Syllabus: Economy
