In a move to encourage environmental stewardship, the Indian government has released the draft Green Credit Programme Implementation Rules 2023. The program aims to incentivize voluntary environmental actions by various stakeholders and promote sustainability initiatives across sectors. Under this program, industries, companies, and other entities are encouraged to fulfill their existing environmental obligations by undertaking activities that generate or purchase Green Credits.
The main objectives of the Green Credit Programme include establishing a market-based mechanism to provide incentives in the form of Green Credits. These credits will be awarded to individuals, farmer producer organizations, cooperatives, forestry enterprises, sustainable agriculture enterprises, urban and rural local bodies, private sectors, industries, and organizations for their environment-positive actions. By creating a tradable outcome, the program intends to motivate stakeholders to actively participate in environmental interventions and adopt pro-planet practices.
The implementation of the Green Credit Programme will follow a phased and iterative approach. Initially, two to three activities from selected sectors will be considered for designing and piloting the program. Subsequent phases will include the addition of more activities from the selected sectors. This approach allows for a gradual expansion of the program’s scope and effectiveness.
The Green Credits generated through this program will be tradable incentives. Initially, they will be available to individuals and entities engaged in selected activities who undertake environmental interventions. These Green Credits will be tradable on a domestic market platform, creating a marketplace for environment-positive actions and fostering sustainable practices.
The draft Green Credit Programme Implementation Rules 2023 reflect India’s commitment to environmental conservation and sustainable development. By encouraging and rewarding environmental actions, the program aims to create a positive impact on the country’s ecosystems, promote cleaner practices, and contribute to the realization of India’s environmental vision, as embodied in “Mission LiFE” (Livelihood, Inclusion, and Financial Empowerment).
