Syllabus
GS Paper 3 – Conservation, environmental pollution and degradation, environmental impact assessment.
Context
Government has introduced a special programme allowing an individual or entity to earn Green Credit and trade it on a dedicated exchange.
Introduction:
Green Credit refers to a unit of an incentive provided for specified activities that deliver a positive impact on the environment.
About GCP:
- As per Environment, Forest, and Climate Change Ministry, Green Credit programme is being launched at the national level to leverage a competitive market-based approach for incentivising environmental actions of various stakeholders.
- This programme is a follow-up action of the ‘LiFE’- (Lifestyle for Environment) campaign and a voluntary one.
- Indian Council of Forestry Research and Education (ICFRE) will take on the role of program administrator and will be responsible for creating guidelines, processes, and procedures for executing the program.
Activities under GCP:
- Green Credit for Tree Plantation: Aimed at boosting green cover through tree plantation and related activities across the country.
- Green Credit for Water Conservation: Designed to promote water conservation, water harvesting, water use efficiency, and wastewater treatment and reuse.
- Green Credit for Sustainable Agriculture: Intended to encourage natural and Regenerative Agricultural practices, as well as land restoration to enhance productivity, soil health, and nutritional value of food.
- Green Credit for Waste Management: Geared towards fostering sustainable waste management practices, encompassing collection, segregation, and treatment.
- Green Credit for Air Pollution Reduction: Focuses on supporting measures to reduce air pollution and other pollution abatement activities.
- Green Credit for Mangrove Conservation and restoration: Geared towards the conservation and restoration of mangroves.
- Green Credit for Ecomark Compliance: Encourages manufacturers to obtain the ‘Ecomark’ label for their products and services.
- Green Credit for Sustainable Building and Infrastructure: Aims to incentivize the construction of buildings and infrastructure using sustainable technologies and materials.
Advantages of GCP:
- Encouraging Legal Obligations: The Green Credit Programme aims to motivate private sector industries, companies, and other entities to align their actions with pre-existing legal obligations. By doing so, they can participate in activities that generate or purchase green credits, thus promoting environmental compliance.
- Supporting Ecosystem Services: The program’s guidelines are instrumental in quantifying and bolstering ecosystem services. These guidelines are particularly beneficial to organic farmers and Farmer Producer Organizations (FPOs), recognizing the ecological value of their efforts.
- Innovative Instrument for Rewards: An innovative aspect of the Green Credit Programme is its pioneering approach in valuing and rewarding a range of ecosystem services. This approach allows green projects to achieve more significant returns beyond just carbon-related benefits, encouraging environmentally beneficial actions.
- Inclusive Approach to Incentives: The program doesn’t limit its incentives to specific sectors. It recognizes and incentivizes actions from individuals, communities, as well as corporate and business entities. This inclusive approach ensures a broad spectrum of involvement in environmental conservation.
- Climate Co-Benefits and Dual Credits: Environmental activities generating Green Credits under the program may yield climate co-benefits, such as carbon emissions reduction. Importantly, these activities can accrue both green credits and carbon credits, which can be traded in their respective markets, providing a dual credit system.
- Mission LiFE Realization: The Green Credit Programme is aligned with the vision of ‘Mission LiFE,’ which seeks to promote sustainability and pro-environment actions among individuals and organizations. By engaging pro-planet advocates and entities, the program plays a pivotal role in realizing this overarching mission.
Concerns and Issues:
- Concerns of Greenwashing: Experts express worry that the market-based mechanism of green credits could give rise to greenwashing, a practice involving false or exaggerated environmental claims to create a positive image without delivering tangible environmental benefits.
- Tokenistic Activities: The fear is that companies and entities might engage in superficial or tokenistic actions to earn green credits, sidestepping substantial efforts to address pressing environmental concerns.
- Effectiveness and Resource Allocation: Questions also arise regarding the effectiveness of these mechanisms in achieving urgent emissions reductions. Concerns extend to the allocation of resources, which might focus on monitoring and fraud prevention rather than transformative efforts led by the government.
Way forward:
- Methodology and Standards Robustness: Ensuring the Green Credit System’s methodology and standards are strong and reliable is of paramount importance. It is essential to establish additional strategies that can generate sufficient demand for green credits, promoting the viability and stability of the market.
- Careful Implementation of Green Credit System: The implementation of the Green Credit System, particularly its emphasis on tree plantation and afforestation, requires careful assessment. This involves addressing unresolved issues related to forest ownership and governance rights, ecological and biodiversity challenges, and global criticisms of carbon credit schemes.
- Importance of Internal Discussions and Public Consultations: Internal discussions and public consultations play a critical role in addressing these aspects. It is through these processes that the system can be fine-tuned to ensure that it is effective, equitable, and aligned with environmental goals.
Conclusion:
Green Credit Programme holds promise but requires robust standards and careful implementation. It needs to address challenges related to environmental stewardship while encouraging compliance and innovation through a transparent and consultative approach.
Source: The Hindu
Practice Question
Examine the potential ramifications of the Green Credit Programme on fostering green initiatives and sustainability within the nation. (Answer in 250 words)