Green Credits

March 31, 2025

The Green Credit Programme (GCP), launched by the Ministry of Environment, Forest and Climate Change (MoEF&CC), was rolled out despite concerns from the Law Ministry regarding its legal validity.

What is Green Credit (GC)?

Green Credit (GC) is a unit of incentive provided for engaging in environmentally positive activities.
These credits can be traded on a dedicated exchange, similar to carbon credits.
The Green Credit Programme (GCP) operates under the Environment (Protection) Act, 1986.

Green Credit vs Carbon Credit

Feature	Green Credit (GC)	Carbon Credit (CC)
Governing law	Environment (Protection) Act, 1986	Energy Conservation Act, 2001
Beneficiaries	Individuals, communities, private industries	Primarily industries and corporations
Objective	Encourages environment-friendly actions like afforestation, water conservation, and sustainable agriculture	Focuses on reducing carbon emissions by setting emission limits
Market mechanism	Can be traded on a domestic exchange	Traded in national & international carbon markets
Climate co-benefits	May qualify for carbon credits, leading to reduced carbon emissions	Cannot be converted into Green Credits

Implementation of the Green Credit Programme (GCP)

The Environment Ministry launched the Green Credit Programme (GCP) to enhance forest cover, promote sustainable practices, and incentivize pro-environmental actions.
Who can earn Green Credits?
- Individuals, communities, and industries that engage in eco-friendly activities.
- Examples include:
  - Afforestation & reforestation
  - Water conservation
  - Sustainable agriculture
- How does it work?
  - Participants receive tradable Green Credits for their contributions.
  - These credits can be sold to industries that need to fulfill environmental obligations (e.g., compensatory afforestation).
- Green credits can be traded on a domestic platform, enabling entities to meet their legal obligations, such as compensatory afforestation for industrial projects.

Since its launch, 384 entities, including 41 Public Sector Undertakings (PSUs) like Indian Oil Corporation Ltd, Power Grid Corporation of India Ltd, and NTPC Ltd, have registered under the scheme

Source : Before rolling out Green Credits, Environment Ministry sidestepped Law queries

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Green Credits

The Green Credit Programme (GCP), launched by the Ministry of Environment, Forest and Climate Change (MoEF&CC), was rolled out despite concerns from the Law Ministry regarding its legal validity.

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