India’s Green Credit Rules 2023

The Government of India officially promulgated the Green Credit Rules, 2023 on October 12, 2023 through the Ministry of Environment, Forest and Climate Change (MoEFCC). Published in the Gazette of India, the rules came into force immediately with the aim of promoting the Green Credit Program – an initiative to encourage environmental preservation and sustainability through market-driven strategies.

Key Features of the Green Credit Rules

The Green Credit Rules, 2023 allow any person or entity to take measures to protect, preserve, or conserve the environment and earn green credits. Eligible activities include:

• Tree plantation
• Water management
• Sustainable agriculture
• Waste management
• Air pollution reduction
• Mangrove conservation and restoration
• Eco mark label development
• Sustainable building and infrastructure

To obtain green credits, applicants must register their activity with the designated Administrator through an online portal. The activity will then be verified by an authorized agency, and upon successful verification, the applicant will receive a Green Credit Certificate.

The Administrator determines the formula for calculating green credits based on factors like equivalent resource use, size, and scope required to achieve the intended environmental result. A trading platform and Green Credit Registry have also been established to facilitate the buying, selling, and tracking of green credits.

Alignment of Green Credit Rules with India’s Environmental Goals

• India has set ambitious targets to combat climate change, including reducing the emissions intensity of its GDP by 45 percent by 2030 compared to 2005 levels.
• The country also aims to achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
• The Green Credit Program aligns with these goals by incentivizing environmentally friendly practices and behaviors.
• It complements other initiatives like India’s Nationally Determined Contributions (NDCs) under the Paris Agreement, the National Action Plan on Climate Change (NAPCC), and various State Action Plans on Climate Change (SAPCCs).

About the Ministry of Environment, Forest and Climate Change (MoEFCC)

• The Ministry of Environment, Forest and Climate Change (MoEFCC) is a central government ministry responsible for environmental protection, conservation of forests, and addressing climate change issues in India.
• MoEFCC promulgated the Green Credit Rules, 2023 to promote environmental preservation and sustainability through market-driven strategies.
• The rules allow entities to earn green credits for eco-friendly activities like tree plantation, sustainable agriculture, waste management, and air pollution reduction.
• MoEFCC has established a trading platform and Green Credit Registry to facilitate the buying, selling, and tracking of green credits.

Potential Impact and Challenges of Green Credit Rules

The Green Credit Rules have the potential to drive significant environmental benefits by encouraging a wide range of sustainable practices. However, effective implementation will require robust monitoring and verification systems to ensure the integrity of the credits awarded.

Challenges may include ensuring equitable access to the program for smaller entities, preventing greenwashing or fraudulent claims, and integrating the green credit market with existing environmental regulations and carbon markets. Capacity building and awareness raising will also be crucial for widespread adoption.