The Green Credit Programme (GCP), introduced under the Environment (Protection) Act, 1986, is part of India’s broader push for sustainable development. It seeks to incentivize voluntary environmental actions by industries, individuals, and institutions through a credit-based system. These actions may include afforestation, conservation of water bodies, and waste management, contributing to India’s climate and biodiversity goals. While the programme offers potential benefits for environmental restoration, concerns have been raised about its potential misuse to circumvent existing laws, particularly those related to forest conservation.
For the GCP to work effectively without undermining forest laws, it must be designed to complement existing frameworks like the Forest Rights Act, 2006, and the Forest (Conservation) Act, 1980. The government has asserted that the GCP is not a substitute for the existing obligations under these laws but rather a supplementary mechanism to incentivize private and community participation in conservation efforts. The GCP must ensure that any green credits earned through afforestation or conservation efforts do not replace the legal requirement for compensatory afforestation or biodiversity restoration in forest diversion projects.
To prevent misuse, the GCP must include strict monitoring and reporting mechanisms. Digital tools like Geographical Information Systems (GIS) and satellite-based monitoring, as recommended by the Kasturirangan Committee (2012) on Western Ghats conservation, can ensure that afforestation and conservation efforts under the GCP are carried out in areas that contribute meaningfully to ecological balance, and not as mere greenwashing exercises.
Additionally, the Green Credit Advisory Council (proposed under the GCP) must include independent environmental experts to ensure transparency in the allocation and verification of credits. These experts should regularly review whether projects generating green credits are meeting biodiversity and conservation goals.
While the GCP encourages afforestation, it must prioritize projects that have high ecological value rather than simply increasing forest cover. Reports by the Forest Survey of India (FSI) have shown that monoculture plantations, often undertaken under compensatory afforestation, do not compensate for the biodiversity lost through natural forest clearance. The GCP should focus on ecosystem restoration, including the revival of degraded forest areas, conservation of native species, and improving water retention capacity, to align with the National Action Plan on Climate Change (NAPCC).
The GCP has the potential to foster greater community and private sector involvement in conservation efforts. For instance, through the NABARD’s (National Bank for Agriculture and Rural Development) involvement, local communities and individuals can engage in green activities like watershed management and reforestation, contributing to both environmental and socio-economic benefits.
In Assam, for example, initiatives like the Kaziranga Karbi Anglong Landscape conservation have involved local communities in reforestation projects. Such community-led initiatives could be scaled up under the GCP, helping restore biodiversity while creating livelihood opportunities.
The Green Credit Programme aligns with India’s climate mitigation strategies under the Paris Agreement, where the country committed to creating an additional 2.5 to 3 billion tonnes of carbon sinks through forest and tree cover by 2030. The GCP incentivizes activities like afforestation, soil conservation, and wetland restoration, which contribute directly to carbon sequestration.
While the Green Credit Programme has the potential to promote voluntary environmental actions, it must be carefully regulated to avoid misuse and ensure that it does not undermine existing forest conservation laws like the Forest (Conservation) Act, 1980. By incorporating stringent monitoring, ensuring complementarity with current regulations, and focusing on ecologically valuable conservation efforts, the GCP can contribute significantly to India’s environmental sustainability goals. However, without adequate safeguards, there is a risk that industries may use it as a tool to circumvent their legal obligations, diluting the integrity of India’s conservation framework.
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