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Green Credits Now Linked to Canopy Density

Why in the News?

The Union Environment Ministry has revised rules under the Green Credit Programme (GCP), linking credits to tree survival and canopy density rather than mere numbers. Green credits will now be awarded after five years, only if 40% canopy density is achieved.

Key Changes in New Methodology:

  • Earlier Rule (2024): Green credits were awarded within two years, based on 1,100 trees per hectare benchmark.
  • Revised Rule (2025):

○ Credits to be awarded only after 5 years of plantation efforts.

○ Must achieve minimum canopy density of 40% and ensure tree survival.

○ One Green Credit = One surviving tree of more than five years, verified by designated agencies.

○ Non-tradable and non-transferable, except between a company and its subsidiaries.

○ Credit generation focuses on quality, density, and survival rather than just numbers.

Significance and Implications:

  • Addresses criticism of past plantation drives that ignored tree survival and canopy quality.
  • Ensures plantations contribute to ecosystem restoration, not just numerical targets.
  • Encourages long-term monitoring and health of plantations.
  • Prevents misuse by allowing only one-time exchange of credits for compliance with legal obligations.
  • As of now, 57,986 hectares of degraded forest land have been registered under GCP.
  • Strengthens India’s climate action efforts under Paris Agreement commitments and aligns with carbon neutrality goals.

About Green Credit Programme :
● Launched: November 2023 by PM Narendra Modi at the UN Climate Conference in Dubai (COP28).
● Objective: Incentivise voluntary environmental actions such as tree plantation, water conservation, waste management, air pollution reduction, etc.
● Framework: Provides for market-based trading of green credits on a designated platform.
● Implementation: Companies, groups, or individuals are allotted degraded forest land via state forest departments for plantation and restoration activities.
● Utility: Credits can be used for compensatory afforestation, meeting CSR obligations, or reporting under Environmental, Social, and Governance (ESG) leadership indicators.