Context

• As climate change intensifies, nations are seeking sustainable solutions to reduce carbon emissions and restore ecological balance.
• For India, a rapidly developing economy with high carbon dependencies, tree plantation and carbon sequestration have emerged as indispensable tools.
• These tools are necessary not only to mitigate climate change but also to strengthen environmental resilience, industrial competitiveness, and rural livelihoods.

The Urgent Need for Afforestation and Environmental and Economic Benefits

• The Urgent Need for Afforestation
  • India’s forest and tree cover currently stands at 25.17%, significantly below the 33% target outlined in the National Forest Policy of 1988.
  • This gap is critical, especially as deforestation, urban expansion, and industrial emissions continue to strain ecological systems.
  • Forests serve as natural carbon sinks, absorbing atmospheric CO₂ and regulating climate systems.
  • The need to enhance India’s carbon sequestration potential through afforestation is urgent, not just as a climate imperative, but also as a socio-economic strategy.
• Environmental and Economic Benefits
  • Large-scale tree plantations offer multifaceted benefits.
  • Beyond absorbing greenhouse gases, they contribute to improving soil health, reducing erosion, recharging groundwater, and increasing resilience against climate-induced disasters like droughts and floods.
  • These environmental functions translate into economic value, particularly in rural areas where afforestation creates jobs in nursery management, forest restoration, and agroforestry.
  • Agroforestry, which integrates trees with crops and livestock systems, is especially promising.
  • It enhances biodiversity, boosts productivity, and diversifies income streams.
  • According to the Indian Council of Agricultural Research, agroforestry practices can raise farm incomes by 20–30%, showcasing their potential for climate adaptation and rural development.

Policy Initiatives and Private Sector Involvement

• Recognising these benefits, India has rolled out several policies to accelerate afforestation.
• The National Agroforestry Policy (2014) and the Trees Outside Forests in India Program encourage private landowners and industries to undertake tree planting, reducing pressure on natural forests and restoring degraded lands.
• One flagship initiative, the Green India Mission (GIM), under the National Action Plan on Climate Change, has been instrumental in increasing forest cover and promoting sustainable forest management.
• Between 2017 and 2021, GIM contributed to a 0.56% increase in forest area, signalling modest but tangible progress.
• Corporate engagement has also grown, driven by environmental, social, and governance (ESG) goals and international pressure.
• Companies in sectors such as cement, steel, and automotive have adopted tree plantation drives as part of their carbon offset strategies.
• These efforts are not merely philanthropic; they are increasingly strategic, helping firms earn carbon credits under mechanisms like the Verified Carbon Standard (VCS) and Clean Development Mechanism (CDM).

Global Pressures and Competitive Advantage

• India’s industrial sector faces growing international scrutiny regarding carbon intensity.
• Notably, the European Union's Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026, will levy tariffs on carbon-intensive imports such as steel, aluminium, and cement.
• With India-EU trade hitting €124 billion in 2023, non-compliance could erode India's export competitiveness.
• Consequently, afforestation presents a cost-effective alternative for emission reduction.
• While the average price of carbon credits under the EU Emissions Trading System reached €83 per tonne in 2023, investing in domestic tree plantations allows Indian firms to offset emissions at a lower cost, while also contributing to national climate goals.

Challenges and Policy Recommendations

• Despite its promise, large-scale afforestation in India faces structural challenges. Chief among them is the lack of a robust carbon trading framework.
• To fully leverage the global carbon market, India must establish a transparent national carbon credit registry and adopt a clear regulatory framework under Article 6 of the Paris Agreement.
• Furthermore, financial incentives and risk mitigation tools are necessary to encourage long-term private sector investments in forestry projects.
• Additionally, there is a need for greater community involvement.
• Empowering rural communities through training, financial support, and market linkages can ensure the sustainability and scalability of afforestation efforts.
• Local participation not only increases the success of these projects but also fosters a sense of ownership and environmental stewardship.

Conclusion

• As India aspires to achieve net-zero emissions by 2070, tree plantation and carbon sequestration will remain central to its climate strategy.
• These initiatives are no longer optional; they are essential for national sustainability, economic competitiveness, and social welfare.
• The convergence of environmental policy, corporate strategy, and community action around afforestation represents a powerful pathway for India to lead in climate resilience and green development.
• The costs of inaction, ecological degradation, economic penalties, and social instability, are far too great to ignore.