New Delhi, Aug. 31 — The Union Environment Ministry has notified new rules under the Green Credits Programme (GCP), linking Green Credit issuance to canopy density and the survival of trees in restored forest land, officials said Saturday.
Under the updated norms, Green Credit will be awarded only after a minimum of five years of restoration activity and after achieving at least 40% canopy density in degraded forest parcels. One Green Credit will be granted for each new tree older than five years, based on vegetation status, including changes in canopy density and the number of surviving trees.
“The credit generated for compensatory afforestation or tree plantation under the programme will be non-tradable and non-transferable, except for transfers between a holding company and its subsidiary companies,” the ministry noted.
The Administrator of the GCP will evaluate claims and, based on verification through designated agencies, generate and issue Green Credit to applicants. The new rules mark a shift from the previous methodology, which awarded one credit per tree planted, provided a minimum density of 1,100 trees per hectare was achieved within two years.
Green Credits can be exchanged only once to meet corporate social responsibility (CSR) obligations or for compliance with compensatory afforestation requirements related to forest land diversion for non-forestry purposes.
Launched in December 2023 at the United Nations Climate Conference, the GCP is a market-based mechanism aimed at incentivising voluntary environmental actions across sectors by individuals, communities, private industries, and companies. Green Credits issued by the government can be traded on a domestic platform to buyers seeking to meet sustainability targets or legal obligations.
According to government data, 57,986 hectares of degraded forest land have already been registered under the programme.
