India Initiates Green Credits Draft To Reward Environment Plans

by | Jul 2, 2023 | Daily News, Environmental News, Green Investments

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The Indian government has taken a major stride toward environmental sustainability by introducing the draft for the Green Credit Programme. This pioneering initiative, which goes beyond carbon and encompasses various facets of environmental and social sustainability, aims to reward individuals, private sectors, and other entities for their voluntary environmental actions.

With the implementation rules notified by the Ministry of Environment, Forest and Climate Change (MoEFCC), India is poised to create a mass movement centered around pro-planet strategies to achieve its net zero goal by 2070.

To know more about how India Initiates Green Credits Draft To Reward Environment Plans, read below.

Promoting a Competitive Market for Green Credits

The Green Credit Programme is designed to establish a national-level framework that fosters a competitive market-based approach to environmental actions. By incentivizing a broad spectrum of stakeholders, including individuals, private sector industries, and community organizations, the program aims to encourage and acknowledge their contributions towards environmental preservation. Additionally, the Green Credit Programme provides an opportunity for companies and entities to fulfill their existing obligations, as mandated by other legal frameworks, by aligning their actions with those relevant to generating or purchasing Green Credits.

According to Manish Dabkara, Chairman and MD of EKI Energy Services Ltd, a leading player in Carbon Trading, “India has truly strengthened its global leadership towards environmental sustainability through a pioneering and unique regulatory step to introduce the Green Credit Programme, which is far beyond just carbon but encompasses all major attributes of environment and social sustainability. One of the major highlights of the draft notification is to provide regulatory provisions to account for individual and community actions, besides corporate and businesses, and incentivize them.

Wide-Ranging Environmental Actions Supported by Green Credits

The government has identified key sectors to kickstart the Green Credit Programme. These include expanding green cover through tree plantation, promoting water conservation and efficiency, adopting natural and regenerative agricultural practices, restoring land productivity and soil health, managing waste, reducing air pollution, conserving mangroves, and promoting sustainable building and infrastructure.

Green Credits offer additional benefits beyond traditional carbon credits. Dabkara highlights that the program provides incentives for sustainable agriculture, forestry, water conservation, waste management, and eco-labeling activities.

Equivalence and Fungibility for Environmental Outcomes

To ensure consistency and fairness, thresholds and benchmarks will be established for each Green Credit activity. This will determine the generation and issuance of Green Credits. The environmental outcomes achievable through any Green Credit activity will be evaluated based on factors such as resource requirement, scale, scope, size, and other relevant parameters. Each activity will be allocated one unit of Green Credit based on equivalence with these parameters, maintaining fungibility across sectors.

The implementation of the Green Credit Program will incorporate digital processes, including self-assessments of eligible activities, activity registration, issuance of Green Credits, performance monitoring, and other related procedures. This digital framework will streamline and facilitate the effective functioning of the program.

With the Indian government’s ambitious vision of “Mission Life” and the way India Initiates Green Credits Draft To Reward Environment Plans, the nation takes a significant step forward in its commitment to environmental stewardship. By incentivizing and rewarding sustainable practices, India takes a significant step towards environmental stewardship.

Also Read: Saudi Firms Procure Tons Of Carbon Credits In Kenya Auction

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