The amendments will allow organizations to plant trees on degraded land parcels in exchange for credits.
The Ministry of Environment, Forest and Climate Change (MoEFCC) has introduced amendments to the green credit rules to encourage environmental action and promote forest restoration.
Introduction and Purpose
These amendments, published on February 26, detail eligibility criteria for land, application procedures, and a standardized method for calculating green credits from tree plantation activities. Green credits serve as incentives for environmentally beneficial actions, including tree planting, water conservation, sustainable agriculture, and pollution reduction. These credits are tradable, allowing individuals and organizations to monetize their environmental efforts and incentivize others to adopt similar practices.
Eligibility and Calculation
India is yet to establish a domestic carbon/green credit marketplace, with regulations for it under review. Nevertheless, there are independent platforms running such services. The amendments restrict tree plantation for green credits to degraded land parcels under state or Union Territory control, such as open forests, scrub lands, wastelands, and catchment areas, with a minimum land size of 5 hectares.
Concerns and Criticisms
Concerns have been raised about the vagueness of the term "degraded forests," which could lead to ecological instability. Environmental law experts, like Debadityo Sinha from the Vidhi Centre for Legal Policy, have criticized the rule for not clearly defining degraded forests, fearing it could disrupt natural ecosystems. The definition of degraded land includes areas that have lost their ability to support healthy plant growth and ecosystems due to factors like deforestation, overgrazing, harmful farming practices, or extreme weather events. There are concerns that the amendment could transform natural forests into man-made ones, disturbing the ecological balance.
Defense and Implementation
Despite these concerns, an official from the environment ministry defended the amendment, stating it would promote forest restoration and increase green cover in India. The amendment provides a clear and standardized framework for generating green credits through tree plantation, streamlining the process for participants and offering flexibility in using green credits. These credits can be used to fulfill compensatory afforestation requirements or contribute to environmental, social, and governance (ESG) initiatives and corporate social responsibility (CSR) projects.
Application and Verification Process
Applicants for green credits must apply to the MoEFCC administrator, who will identify suitable land and prepare a demand note outlining costs. The forest department will then carry out the plantation based on a predetermined management plan, completing it within two years. Upon completion, the department issues a certificate to the applicant. The MoEFCC evaluates and verifies the activity before awarding green credits, with the number of credits linked to the number of successfully grown trees, requiring a minimum density of 1,100 trees per hectare for certification. Each successfully grown tree earns the applicant one green credit.