The Green Credits Programme, initiated by India’s Environment Ministry in October 2023, aims to reward positive environmental actions beyond just reducing carbon emissions.
- Methodology and Scope: Similar to carbon credits, the program involves creating a market where entities can trade credits earned from environmental actions like water conservation and soil improvement. Methodologies for measuring and verifying such actions are still in development.
- Detailed Methodology Introduction: On February 22, 2024, the Ministry of Environment, Forests and Climate Change (MOEFCC) released a detailed methodology for a component of its Green Credit Programme, effectively enabling the trade of environmental benefits arising from tree planting.
- Differences from Carbon Credit Scheme: Unlike carbon credits, which mainly benefit industries, the Green Credits Programme extends its benefits to individuals and communities.
Key Features and Benefits
- Inclusivity: One of the major benefits of the Green Credits Programme is its inclusivity, allowing both organisations and individuals to participate in activities like composting and community cleanups to earn credits.
- Eligible Activities: The programme covers various activities across eight key areas, including tree plantation, water management, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, eco-mark labelling, and sustainable building and architecture.
- Complementing Carbon Credits: The Green Credits Programme complements the carbon credit system, with activities eligible for green credits also qualifying for carbon credits if they reduce or remove carbon emissions.
- Focus Beyond Carbon: Unlike carbon credits, the Green Credits Programme focuses on a wider range of environmental actions, emphasising the importance of preserving and restoring natural resources.
- Incentive-Based Approach: The programme encourages environmentally friendly practices through incentives, which may be more effective than enforcement measures like taxation, especially in regions with weak enforcement.
- International Collaboration: India has proposed the concept of a global market for green credits, similar to the existing carbon credit market, demonstrating a commitment to international cooperation in tackling environmental challenges.
Criticism of the Green Credit Programme
Scepticism from Environmentalists and Experts
While the government touts the Green Credit Programme as an innovative market-based approach to incentivize environmental actions, critics, including environmentalists and policy experts, express concerns about relying too heavily on market forces for conservation and sustainability goals. They argue that the scheme’s focus on meeting existing obligations under compliance laws may not effectively encourage voluntary participation.
Ecological Concerns
Critics criticise the scheme for overlooking ecological aspects, particularly in its treatment of forests. Sinha notes that the program’s terminology, such as labelling certain areas as “degraded,” could incentivize large-scale plantation in ecologically sensitive regions, potentially harming biodiversity and ecosystem balance.
Negative Impact of Afforestation
Studies, including one published in the journal Nature Sustainability, raise alarms about the unintended consequences of large-scale afforestation efforts. While afforestation is often seen as a climate remedy, research suggests that it can disrupt soil organic carbon levels, potentially leading to ecological imbalances and loss of biodiversity.
Importance of Grasslands
Critics highlight the ecological importance of grasslands, challenging the focus solely on tree plantation in the Green Credit Programme. Grasslands, often considered as “wastelands,” play a crucial role in conserving biodiversity and carbon sequestration. Ignoring their significance in favour of tree planting may overlook their ecological contributions.
Land Use Concerns
Experts express concerns that the Green Credit Programme, particularly its emphasis on tree plantation, could lead to land use changes detrimental to ecological integrity. They warn against categorising open forest systems as “degraded,” as this may prioritise development over conservation, potentially harming ecosystems like India’s savannas.
Challenges in Implementation
Critics point out practical challenges in implementing the Green Credit Programme, such as the lack of clarity on fungibility between credits from different activities and the rationale behind assigning credits based solely on tree numbers. They also highlight difficulties in acquiring suitable land for compensatory afforestation, which could hinder the program’s effectiveness in achieving conservation goals.