The Union Ministry of Environment, Forest and Climate Change (MoEFCC) has amended the green credit Rules.
- The amendment, was published on February 26. It introduces explicit criteria for land eligibility, outlines application procedures, and introduces a standardised methodology for calculating green credits generated through tree plantation activities.
- According to the notification, tree plantation for green credits can now only occur on degraded land parcels under state or Union Territory control, encompassing open forests, scrub lands, wastelands, and catchment areas.
- The minimum land size for such projects is set at 5 hectares.
- A green credit is a unit of incentive awarded for carrying out actions that have a positive environmental impact. It works like a reward point for activities such as tree planting, water conservation, sustainable agriculture, or pollution reduction.
- Green credits can be used to fulfil compensatory afforestation requirements for non-forestry land use or contribute to environmental, social, and governance (ESG) and corporate social responsibility (CSR) initiatives.
- The credits can also be exchanged for meeting compensatory afforestation targets. Green credits can be traded on a market platform, allowing individuals and organisations to monetise their environmentally-friendly actions and providing incentives for others to adopt similar practices.
- Degraded land is a piece of land that has lost its ability to support healthy plant growth and ecosystems. This can happen due to cutting down too many trees, overgrazing by animals, harmful farming practices, or extreme weather events.
