Introduction
Growth, a word which indicates the idea of upliftment, with reference to an individual it could be determined as monetarily success, better health, good education etc., But when we talk about nation’s growth then it is not just about an individual’s concern, it is a matter of each and every person living in the country. We are living in the era where the economic growth of the nation is as much important as important food for an individual, but the question which arises is that at what cost?
The rapid growth of nations in the world might seems very promising and desirable to the people living in a particular nation but the hidden drawback which we also should be concerned of is the effects which we are creating behind the curtains of development or growth.
Industries plays a major role in development of a nation it has a major share in generating employment in the country and adds significantly in the economy of a nation, but what it also contributes is the pollution and environment degradation. Environment degradation and climate change is a very pertinent issue we are facing all over the world. The Indian Ministry of Environment, Forest, and Climate Change published a landmark announcement on October 12, 2023, proposing the Green Credit Rules, 2023, in an ambitious attempt to solve the world’s most severe environmental problems. This programme represents a significant change in environmental governance since it uses a market-based approach to encourage and reward environmentally responsible behaviours.
Context and Objectives
The Green Credit project is a significant element of the greater ‘LiFE’ (Lifestyle for Environment) movement, which was developed as a grassroots, large-scale endeavour aimed at safeguarding and preserving the environment. The primary objective of the Green Credit project is to facilitate a widespread transition towards sustainable lifestyles by incorporating the ideas of ‘LiFE’. This initiative seeks to promote a harmonisation of behaviours with long-standing ideals of conservation and moderation throughout the entire nation.
The notification highlights the independent nature of the Green Credit programme in relation to the Carbon Credit Trading Scheme of 2023, placing emphasis on the possibility of climatic co-benefits with environmental advantages. Activities that generate green credit have the potential to be eligible for carbon credits within the aforementioned plan, therefore emphasising the interdependence of environmental initiatives.
Key Provisions of the Green Credit Rules, 2023[1]
1. Short Title and Commencement
The rules, formally titled the Green Credit Rules, 2023, come into force upon their publication in the Official Gazette.
2. Objectives of Green Credit Programme
The primary objectives are multi-faceted, encompassing the incentivization of positive environmental actions through a market-based mechanism, the generation of tradable green credits, and the encouragement of entities to meet environmental obligations, whether mandatory or voluntary.
3. Definitions
To ensure clarity, key definitions are provided, with “Green Credit” defined as a singular unit of incentive for a specified activity delivering a positive environmental impact.
4. Green Credit Programme
Entities are empowered to undertake a diverse array of activities, including tree plantation, water management, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, ecomark label development, and sustainable building and infrastructure development. To earn green credits, entities must register their activities, undergo verification by a designated agency, and receive a certificate of green credit.
5. Methodology of Generating Green Credit
The methodology for calculating green credit will be determined by the Central Government based on recommendations from the Administrator. This calculation will be rooted in equivalence of resource requirement, parity of scale, scope, size, and other relevant parameters essential for achieving the desired environmental outcome.
6. Procedure for Generation of Green Credit
The Administrator will establish the methodology for evaluating and verifying activities, the registration process, and the requisite details for registration. Additionally, a dedicated website will be developed for the electronic submission of applications.
7. Administrator
The Indian Council of Forestry Research and Education is designated as the Administrator, tasked with implementing the Green Credit programme, managing its operations, and developing guidelines and procedures. The Administrator will also oversee the establishment of the Green Credit Registry and trading platform.
8. Steering Committee
A Steering Committee, appointed by the Central Government, will monitor the programme’s implementation. Comprising representatives from ministries, experts, and industry associations, the committee will periodically review the Green Credit programme and provide recommendations to the Central Government on activities and sectors to be included in the programme.
9. Technical Committee
Technical Committees, established for each activity, will assist the Administrator in implementation by developing methodologies and providing recommendations. These committees will play a crucial role in determining the methodology for calculating one unit of Green Credit and devising mechanisms for registration, verification, evaluation, measurement, and reporting processes.
10. Green Credit Registry
The Administrator or designated agency will establish and maintain a Green Credit Registry. This electronic database will contain essential data elements relevant to the registration and issuance of green credits, ensuring accurate accounting and secure data storage.
11. Trading Platform
With Central Government approval, the Administrator will establish and maintain a trading platform for the exchange of green credits. This platform will adhere to guidelines set by the Administrator.
12. Knowledge and Data Platform
A knowledge and data platform will be developed and maintained by the Administrator to ensure transparency in reporting sectoral progress. This platform will collate data from the Green Credit Registry and other sources, providing insights into sectoral achievements, best practices, and capacity building initiatives.
13. Designated Agency
Entities designated as agencies will conduct verifications and submit reports to the Administrator in accordance with guidelines. These agencies will play a crucial role in ensuring the integrity of the Green Credit programme by verifying activities undertaken by applicants.
14. Demand Generation for Green Credit
Participation in the Green Credit programme is voluntary. The Steering Committee will recommend measures to generate demand for green credits in the country, fostering a culture of environmental responsibility.
15. Auditors
To maintain accountability and transparency, independent auditors will audit the activities of the Administrator, designated agency, Registry, trading platform, and knowledge and data platform. This audit, conducted at the end of every third financial year, aims to ensure compliance and integrity in the functioning of these entities.
Conclusion
The Green Credit Rules of 2023 represent a comprehensive and forward-thinking framework aimed at promoting environmental preservation and fostering sustainable development within the context of India. The government’s objective is to establish a strong ecosystem that encourages healthy environmental behaviours across all industries by combining market-based processes with traditional values and utilizing technology through platforms such as the Green Credit Registry and trading platform. The inclusion of authorized agencies, Technical Committees, and the Steering Committee introduces additional levels of accountability and specialized knowledge to enhance the efficacy of the initiative. The Green Credit initiative is expected to have a dual impact, both in terms of its contribution to environmental protection and its potential to stimulate a wider societal change towards sustainable living and responsible environmental stewardship. The regulations embody a comprehensive strategy aimed at attaining a nuanced equilibrium between growth and conservation, signifying a significant achievement in India’s environmental governance framework.
[1] Green Credit Rules, 2023, https://egazette.gov.in/WriteReadData/2023/249377.pdf (last visited on Nov. 10, 2023).