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Revised norms on tree plantation-based green credits | Current Affairs | Vision IAS
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Revised norms on tree plantation-based green credits

Posted 01 Sep 2025

1 min read

The revised norms issued under Green Credit Rules, 2023 focuses on the growth and survival of trees, rather than the earlier benchmark of trees per hectare.

Key Highlights of Revised Norms

  • Claim of Green Credit: After 5 years of restoration on degraded forest land and achieving at least 40% canopy density.
    • 1 Green Credit = 1 new tree (over 5 years old).
  • Credits are non-tradable and non-transferable, except between a company and its subsidiaries.
  • Credits may be exchanged once for meeting compensatory afforestation requirements, CSR obligations and project-specific legal plantation obligations.
  • Once exchanged, credits cannot be reused.

What are Green Credits (GCs)?

  • A form of environmental rewards that represent the positive environmental actions awarded to entities who participate in tree plantation initiatives under the Green Credit Program.

About Green Credit Program (GCP, 2023)

  • It is an innovative market-based mechanism to encourage voluntary plantation activity across the country.
  • Launch: By Ministry of Environment, Forest and Climate Change under Environment (Protection) Act, 1986.
  • Features:
    • Land Bank Creation: Through registration of degraded forest lands by Forest departments.
    • Encourage Participation: of govt. bodies, NGOs, private firms, etc to take up afforestation.
    • Incentivisation: Issue Green Credits as rewards for tree plantation.
  • Tags :
  • Green Credits
  • Green Credit Program
  • Green Credit Rules, 2023
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