Green Credit Programme (GCP)

Why in the News? 

India’s Environment Ministry has made changes to the Green Credit Programme (GCP). Green credits on tree plantation will now be conditional: received after 5 years, contingent upon meeting a canopy density of at least 40 percent and the survival of trees. This changes the intention of planting trees to directly planting trees to make sure it will grow and benefit the ecosystem in the long run.

Key Points: Green Credit Programme (GCP)

New Rule:

• Credits for tree plantation will be granted only after a period of five years.
• Condition: Trees must achieve 40% canopy density and survival benchmarks.

• Objective: Ensure quality, survival, and ecological health of plantations, not just numbers.
• Tree plantation credits will remain non-tradable, except when transferred within a company and its subsidiaries.

Benchmark:

• Credits are granted for each hectare of land that maintains a canopy cover of at least 40%.
• Assessed via field verification and satellite images.

Coverage: Applies to:

• Government plantations.
• Private/voluntary plantations.
• Afforestation/reforestation projects.

Other Green Credit Activities: Programme also covers water conservation, waste management, sustainable agriculture, and pollution control.

About the Green Credit Programme (GCP):

• The initiative was unveiled in November 2023 by Prime Minister Narendra Modi during the UN Climate Conference (COP28) held in Dubai.
• Aim: Create a market-based trading system of credits to incentivize pro-environment actions.
• Nodal Agency: Indian Council of Forestry Research and Education (ICFRE)
• Credit System: Entities/individuals earn green credits for eco-friendly actions (tree plantation, water conservation, sustainable farming, waste management, etc.).
• Use: Credits can be traded/exchanged, encouraging industries to adopt sustainable practices.
• Global Significance: First-of-its-kind initiative linking climate action with market incentives, similar to carbon credits but broader in scope.