GS Paper III

News Excerpt:

PM Narendra Modi launched an initiative focusing on generating Green Credits through plantation on degraded wasteland.

• The Green Credits Initiative surpasses the commercial nature of carbon credits.

About Green Credits Programme:

• The Green Credits Programme was launched by the Environment Ministry in the 2023-24 budget under Mission LiFE.
  • The Ministry of Environment issued the draft ‘Green Credit Programme Implementation Rules 2023’ under the Environment Protection Act 1986.
• It is an effort to create a market-based incentive for different kinds of environment-positive actions, not just for carbon emission reductions.
  • • Such a market-based system already exists for carbon, at the national and international levels, that allows trade in carbon credits. 

• Significance of the Green Credit Programme:

• • Reduces Carbon Footprints: Companies or nations can claim carbon credits if they take action to reduce their carbon footprint. 
  • Provision for Income: These credits can be traded for money. Companies unable to achieve their emission standards pay to buy these credits and improve their performance.
  • Provides flexibility: The Green Credits programme attempts to replicate this mechanism for other environmental actions, like water conservation or soil improvements. 
  • Democratizes credit: Unlike the carbon markets, which are more focused on industry and corporations, green credit programmes can also benefit individuals and communities.

• Flashback on India’s COP 26 commitments:

• • Previously, India made its commitments at Glasgow, in COP-26, of cutting the emissions intensity of India’s GDP by 45%, increasing the share of non-fossil fuels to 50% by 2030, and achieving net zero by 2070.
  • In COP 28, India offered the concept to the international community to create a market for green credits at an international level, just like the one on carbon credits exists.
    • New Target on Climate Finance: The New Collective Quantified Goal (NCQG), refers to ongoing negotiations on a new climate finance commitment developed countries must make to developing countries to accelerate the world’s transition away from fossil fuels.
• Future Scope for the Programme: Methodologies and standards to measure and verify such actions are still being developed. The market would also need to be developed. As a starting point, it is envisaged that private companies would buy these green credits as part of their CSR obligations.