Government Launches Tradable Green Credit Program to Promote Eco-Friendly Initiatives
On October 14, 2023, the government unveiled a novel initiative to promote environmental responsibility through a tradable Green Credit program. This scheme offers individuals and entities the opportunity to earn Green Credits for undertaking activities that have a positive impact on the environment, which can then be traded on a dedicated exchange.
The Environment, Forest, and Climate Change Ministry introduced this market-based approach to incentivize various stakeholders to take environmentally friendly actions. This initiative, inspired by the ‘LiFE’ (Lifestyle for Environment) campaign, is entirely voluntary.
The tradable Green Credit program encompasses eight types of activities including tree plantation, water management, sustainable agriculture, waste management, air pollution reduction, and mangrove conservation and restoration. To earn Green Credits, participants must register their activities online with the Administrator, who will then verify the efforts through a designated agency. A certificate of Green Credit will be granted based on the agency’s report.
A Green Credit Registry and trading platform will be established by the Administrator. This program aims to motivate industries, companies, and other entities to fulfill their environmental obligations and encourage voluntary environmental measures. It is important to note that Green Credits earned to meet regulatory obligations are not tradable.
This initiative is distinct from the Carbon Credit Trading Scheme of 2023, established under the Energy Conservation Act of 2001, though environmental activities generating Green Credits may also qualify for carbon credits, providing dual benefits for eco-friendly actions.
Re-reported from the article originally published in The Hindu
