Revised methodology for calculating Green Credit for tree plantation:
The Environment Ministry released a revised methodology for calculating Green Credit for tree plantation.
- Green Credit is a market-based incentive mechanism under the Green Credit Programme (launched Oct 2023) to reward voluntary eco-friendly actions like tree plantation, mangrove restoration, sustainable farming, water conservation, and waste management.
- Credits act as measurable rewards for positive environmental outcomes.
- Aim:
- Encourage voluntary participation of industries, cooperatives, and communities in ecological restoration.
- Shift from tree-counting to ecological improvement (survival + canopy density).
- Link corporate obligations (CSR, afforestation compliance) with long-term ecological benefits.
Key Features:
- Credits awarded only after 5 years of restoration, ensuring tree survival and growth.
- 40% minimum canopy density required for issuance.
- 1 Green Credit = 1 tree surviving beyond 5 years.
- Credits are non-tradable & non-transferable, except within holding–subsidiary companies.
- Can be exchanged once only for compensatory afforestation, CSR compliance, or project-linked obligations; extinguished after use.
- Verification by designated agencies, with applicant paying a verification fee.
- Projects initiated under 2024 rules will continue under old provisions.
