India’s Green Credit Programme

India’s Green Credit Programme

Subject: Environment

Section: Climate Change

Why is the Green Credit Programme in the News?

• Ministry of Environment, Forest and Climate Change notified the draft ‘Green Credit Programme (GCP)’ implementation rules for 2023.
• It was first announced in the 2023-24 Union Budget to encourage environmental actions through market-based incentives.
• Follow-up action of the ‘LiFE’ campaign.
• Incentivizes positive environmental actions through tradeable green credit.

Overview of the Green Credit Programme:

• ‘Green Credit’ refers to incentives for environmentally positive activities, complementing the domestic Carbon Market.
• It aims to incentivize diverse eco-friendly actions beyond just CO2 emission reductions.

 8 Key Activities Eligible for Green Credits:

• Tree Plantation, Water Conservation, Sustainable Agriculture, Waste Management, Air Pollution Reduction, Mangrove Conservation, Ecomark Acquisition, and Sustainable Building and Infrastructure.

Administration and Significance:

• The Indian Council of Forestry Research and Education (ICFRE) will administer the program.
• It encourages private sector compliance with existing environmental obligations, fostering sustainable practices and providing support for organic farmers and FPOs.

 Concerns Regarding the Green Credit Mechanism:

• Potential risks of greenwashing as companies might engage in superficial activities for credit generation without addressing underlying environmental concerns.
• Allocation of resources for monitoring and fraud prevention instead of transformative initiatives might be a challenge.

Green Credit Registry and Trading Platform:

• Includes the establishment of a Green Credit Registry.
• Administrator responsible for setting up and maintaining a trading platform.

 Overview of LiFE Movement (Lifestyle for the Environment (LiFE) movement):

• India introduced the concept during the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow in 2021.
• LiFE encourages an environmentally conscious lifestyle, emphasizing mindful and deliberate utilization over mindless and wasteful consumption.
• A circular economy, driven by conscious and deliberate consumption, is promoted as an alternative to the prevalent “use-and-dispose” economy.

Objectives of the LiFE Movement:

• The movement aims to utilize social networks to influence climate-centric social norms.
• It plans to establish a global network of individuals termed ‘Pro-Planet People’ (P3) who are committed to adopting and advocating for eco-friendly lifestyles.
• The P3 community will foster an ecosystem that encourages sustainable environmental practices and aims to sustainably reinforce environmentally friendly behaviors.

“Meri LiFE” (My Life) mobile application

 Ministry of Environment, Forest, and Climate Change (MoEF&CC) recently launched the “Meri LiFE” (My Life) mobile application, aiming to empower youth and encourage their active participation in addressing climate change.

The app focuses on five key LiFE themes, including saving energy, water, and reducing single-use plastic, adopting sustainable food systems, and promoting healthy lifestyles.

Moreover, the app includes a “5 for 5 Challenge,” engaging users in five LiFE actions leading up to World Environment Day on June 5th, 2023.

Additionally, the ministry has developed two portals:

The Mission LiFE Portal, providing access to a plethora of creative videos and knowledge materials related to LiFE, and the Meri LiFE Portal, enabling institutions to upload event reports and monitor the progress of the ongoing mass mobilization initiative.

Carbon Credit:

• A tradeable credit representing the right to emit a set amount of carbon dioxide or an equivalent greenhouse gas.
• Equals one tonne of carbon dioxide removed, reduced, or sequestered from the atmosphere.

Carbon Credit Trading Scheme (CCTS):

• A scheme for the reduction or removal of greenhouse gas (GHG) emissions notified by the central government.

Background of CCTS:

• The Energy Conservation (Amendment) Bill, 2022, empowered the central government to specify the carbon trading scheme in consultation with the Bureau of Energy Efficiency (BEE).

Features of CCTS:

• Accredited carbon verifier: An agency accredited by the BEE for validation or verification
• Setting up of Indian Carbon Market Governing Board (ICMGB): Oversees the Indian carbon market, establishes rules, and regulates the sale of carbon credit certificates.
• Role of Environment Secretaries: They serve as ex-officio co-chairmen of ICMGB.
• Bureau of Energy Efficiency (BEE): Acts as the administrator and secretariat for the Indian carbon market and the ICMGB.
• Grid Controller of India Ltd: Serves as the registry for the Indian Carbon Market.
• Central Electricity Regulatory Commission (CERC): Acts as the regulator for trading activities under the Indian carbon market.

About Greenwashing

Greenwashing refers to the practice where firms and governments falsely market various activities as climate-friendly or environmentally responsible, often without verifiable evidence or with misleading claims.

Origin: Coined in 1986 by Jay Westerveld, an American environmentalist and researcher.

• Involves labeling activities as climate-friendly, promoting emissions reduction, or avoidance of emissions, even when such claims lack credibility or are dubious.
• Typically employed to improve the image of the entity while making little to no tangible impact in the fight against climate change.
• Several multinational corporations, including oil giants like Shell and BP, and Coca Cola, have faced allegations of greenwashing.

About ICFRE

• The Indian Council of Forestry Research and Education (ICFRE) is an autonomous organization or governmental agency under the Ministry of Environment, Forest and Climate Change of the Government of India.
• It was established in 1986 and operates as a council for coordinating and managing forestry research and education in the country.
• ICFRE is responsible for carrying out scientific research on issues related to forestry, as well as for providing training and education in the field of forest management and conservation.
• It also plays a crucial role in the formulation and implementation of policies and programs related to forests and the environment.