Home CATEGORIES Environment Government of India Drafts Green Credit Programme, to Incentivise Sustainable Actions

Government of India Drafts Green Credit Programme, to Incentivise Sustainable Actions

Green Credit Programme
The Ministry of Environment, Forest and Climate Change of India has introduced a pioneering initiative known as the Green Credit Programme (GCP) implementation rules for 2023. This ambitious program aims to foster a greener future by incentivising voluntary environmental actions through a market-based approach. By introducing the Green Credit Programme, the government seeks to complement the existing Carbon Market and provide rewards, in the form of tradable “Green Credits,” to individuals, companies, and local bodies for their sustainable initiatives.

A Broader Scope of Environmental Obligations

The Green Credit System’s distinctive feature lies in its ability to encompass a broader scope of environmental obligations, surpassing the limitations of traditional carbon credit systems. While carbon credits primarily focus on CO2 emissions reduction, the Green Credit System recognises the importance of addressing various environmental challenges comprehensively. It encompasses a diverse range of activities that contribute to environmental preservation and sustainability.
One of the key components of the Green Credit Programme is tree plantation. Recognising the vital role of forests in carbon sequestration, the program incentivises individuals, companies, and local bodies to undertake tree plantation activities. By planting and nurturing trees, stakeholders not only mitigate carbon emissions but also contribute to ecosystem restoration, biodiversity conservation, and soil erosion prevention.
Water conservation is another crucial aspect integrated into the Green Credit System. Recognising the scarcity of freshwater resources and the importance of responsible water management, the program encourages stakeholders to adopt measures such as rainwater harvesting, efficient irrigation techniques, and water recycling. By incentivising water conservation practices, the Programme aims to address the pressing issue of water scarcity and promote sustainable water use.
Sustainable agriculture plays a significant role within the Green Credit Programme. It encourages farmers to adopt practices that minimise chemical inputs, promote soil health, and enhance biodiversity. By promoting organic farming methods, agroforestry, and integrated pest management, the program incentivises sustainable agricultural practices that reduce environmental degradation, protect ecosystem services, and ensure food security.
Waste management is another crucial component. The program promotes waste reduction, recycling, and proper disposal practices to minimise the environmental impact of waste generation. By incentivising stakeholders to implement efficient waste management systems, the program aims to reduce pollution, conserve resources, and move towards a circular economy.
Addressing air pollution is a pressing concern in India, and the Green Credit Programme acknowledges its significance. The program incentivises stakeholders to adopt measures that reduce air pollution, such as transitioning to cleaner energy sources, implementing emission control technologies, and promoting sustainable transportation alternatives. By encouraging actions that improve air quality, the program contributes to public health and mitigates the adverse effects of air pollution on ecosystems.
Mangrove conservation and restoration are crucial aspects of the Green Credit Programme. Recognising the significance of mangrove ecosystems in climate change mitigation, coastal protection, and biodiversity conservation, the program encourages stakeholders to undertake activities that restore and conserve mangrove forests. By incentivising mangrove conservation, the program safeguards vital coastal habitats, protects marine biodiversity, and enhances climate resilience.
The Green Credit Programme also incorporates ecomark certification as an environmental obligation. Ecomark certification serves as a recognition of environmentally friendly products and production processes. By incentivising stakeholders to obtain ecomark certification, the program encourages sustainable production practices, reduces environmental pollution, and promotes the adoption of eco-friendly technologies.
Furthermore, the Green Credit System extends its scope to include sustainable building and infrastructure development. The program promotes the adoption of green building practices, energy-efficient technologies, and sustainable construction materials. By incentivising sustainable building and infrastructure projects; the program aims to reduce the environmental impact of the construction sector, enhance energy efficiency, and promote environmentally conscious urban development.
By encompassing these various environmental obligations, the Green Credit Programme ensures that multiple facets of environmental sustainability are addressed and valued. It acknowledges the interconnectedness of environmental challenges and recognises the need for a holistic approach to achieving meaningful and lasting change. Through this comprehensive scope, the program motivates stakeholders to undertake actions that contribute to a greener, more sustainable future for India.

Effective Administration and Implementation

To ensure the efficient administration and implementation of the Green Credit Programme, the Indian Council of Forestry Research and Education (ICFRE) has been entrusted with the responsibility of program administration. As the program administrator, the ICFRE plays a crucial role in developing comprehensive guidelines, processes, and procedures for the implementation of the program. These guidelines will outline the necessary steps and requirements for stakeholders to participate in the program effectively.
One of the key tasks of the ICFRE is the establishment of thresholds and benchmarks for each Green Credit activity. These thresholds and benchmarks will provide clear guidelines for stakeholders to meet the eligibility criteria for earning green credits. By setting measurable targets, the ICFRE ensures that participants are actively engaged in environmentally beneficial actions and contribute to achieving sustainable outcomes.
Furthermore, the Green Credit Programme encourages private sector industries, companies, and entities to align their actions with the program’s objectives. By doing so, these entities can actively participate in the generation or procurement of green credits. This collaboration between the private sector and the program ensures that a wide range of stakeholders are involved in sustainable practices and incentivised for their efforts.

Promoting Ecosystem Services and Sustainable Living

A key objective of the Green Credit Programme is to recognise and reward the value of ecosystem services. While carbon reduction remains an important aspect, the program goes beyond this by quantifying and supporting various ecosystem services. This approach enhances the significance of sustainable actions beyond carbon emissions reductions alone.
Organic farmers and Farmer Producer Organizations (FPOs) stand to benefit significantly from the Green Credit Programme. By promoting sustainable agricultural practices, such as organic farming methods, the program recognises the value of sustainable food production systems. This recognition empowers farmers and FPOs to adopt sustainable practices that not only benefit the environment but also contribute to their economic well-being.
The Green Credit Programme serves as a catalyst for sustainable actions and promotes a lifestyle that emphasises environmental responsibility. By incentivising sustainable practices, the program encourages individuals, companies, and local bodies to adopt greener alternatives in their daily lives. This shift towards sustainable living goes beyond participating in specific activities for credit generation and fosters a mindset that prioritises long-term environmental conservation and sustainability.

Addressing Concerns of Greenwashing

While the Green Credit Programme offers immense potential for positive environmental impact, concerns have been raised regarding the risk of greenwashing. Greenwashing occurs when entities make false or exaggerated claims about environmental sustainability without delivering substantial environmental benefits. To address this concern, the program must establish robust methodologies and standards to ensure the credibility and integrity of the Green Credit System.
Transparency and accountability play crucial roles in mitigating the risk of greenwashing. The Green Credit Programme should include stringent monitoring and verification processes to assess the environmental impact of the actions undertaken by participants. By thoroughly evaluating the outcomes and effectiveness of green projects, the program can ensure that participants are genuinely contributing to environmental sustainability.
Creating sufficient demand for green credits is another important strategy to mitigate the risk of greenwashing. By developing comprehensive marketing and outreach strategies, the Green Credit Programme can raise awareness among potential credit buyers, thus increasing the demand for genuine green credits. This emphasis on creating a viable market ensures that green credits are valued and recognised as genuine indicators of sustainable actions.


India’s Green Credit Programme demonstrates the government’s commitment to environmental sustainability and encourages stakeholders to actively participate in the greening of the nation. By encompassing a broader range of environmental obligations and recognising the value of ecosystem services, the program creates opportunities for diverse, sustainable initiatives. With a focus on robust methodologies, standards, and strategies to generate demand, India’s Green Credit Programme can pave the way for a more sustainable and environmentally conscious society. It is an opportunity to transform aspirations into actions and contribute to a greener future for India and the world.