Why in the News?
The Ministry of Environment, Forests, and Climate Change (MOEFCC) has issued a new methodology for calculating Green Credit for tree plantation under the Green Credit Rules, 2023.
More on the News
- Green Credit Rules, 2023, were enacted under the Environment (Protection) Act, 1986.
- These are provisions for Forest Departments of all States and Union territories to identify degraded land parcels under their control to enhance green cover.
Revised Green Credit calculation Methodology with respect to Tree plantation
- Claim of Green Credit: After 5 years of restoration on degraded forest land, and achieving a minimum 40% canopy density.
- 1 Green Credit = 1 new tree (over 5 years old).
- Credit Transfer: Credits are non-tradable and non-transferable and may be exchanged once but cannot be reused.
About Green Credits
- Green Credit means a singular unit of an incentive provided for a specified activity, delivering a positive impact on the environment.
- These credits can be traded on a dedicated exchange, similar to how carbon credits are traded.
Green Credit | Carbon Credit |
Under the Green Credit Program (GCP) operating under The Environment (Protection) Act, 1986. | Under the Carbon Credit Trading Scheme operating under The Energy Conservation Act, 2001. |
Provides advantages to individuals and communities. | Primarily benefit industries and corporations. |
Green credit activities may qualify for carbon credits, leading to climate co-benefits like carbon emissions reduction, but not vice versa. |
About the Green Credit Program
- It is an innovative market-based mechanism to encourage voluntary plantation activity across the country for afforestation and water conservation.
- It is an initiative within the Lifestyle for Environment or LIFE movement.
- Mission LIFE (2021) is an India-led global mass movement to nudge individual and community action to protect and preserve the environment.
- Established under: "The Environment (Protection) Act, 1986" with MoEFCC as Nodal Agency.
- Objectives:
- Land Bank Creation: Through registration of degraded forest lands by Forest departments.
- Encourage Participation: Of Government entities, Private companies, NGOs, Individuals/group of individuals (registered under the Societies Registration Act)
- Governance Structure
- Governance framework supported by an inter-ministerial Steering Committee.
- Administrator: Indian Council of Forestry Research and Education (ICFRE), responsible for program implementation, management, monitoring, and operation.
- User-friendly digital platform: To streamline Project Registration, Verification and Issuance of Green Credits

Other Initiatives taken for Afforestation
- Mangrove Initiative for Shoreline Habitats & Tangible Incomes (MISHTI) (2023): To restore and promote mangroves as a unique, natural ecosystem.
- Compensatory Afforestation Fund Act, 2016: Provides the legal framework to compensate for forest and ecosystem loss from diversion of forest land, as per the provisions of the Forest (Conservation) Act, 1980.
- National Mission for a Green India (2014): This scheme aims to undertake afforestation activities in degraded forest areas with people's participation.
- National Bamboo Mission (2006): It aims to promote holistic growth of the bamboo sector through region-specific strategies for cultivation and marketing.