Context:
Green Credit Programme (GCP) was flagged by the Ministry of Law and Justice before its rollout, over legality of the business model built into it.
Green Credit Programme (GCP):
- ‘Green Credit’ – A singular unit of an incentive provided for a specified activity, delivering a positive impact on the environment.
- What is GCP? An initiative by the Indian government under the Environment (Protection) Act, 1986, promoting eco-friendly actions through incentives.
- 1st announced in the 2023-24 Union Budget
- Unveiled at COP 28 (UAE)
- Ministry – Ministry of Environment, Forest and Climate Change
- Administration – Indian Council of Forestry Research and Education (ICFRE)
- Who can earn Green Credits? Individuals, communities, and industries earn Green Credits for activities like afforestation, water conservation, and sustainable agriculture.
- How it Works? Credits can be traded or sold to industries for compliance with environmental obligations like compensatory afforestation.
Difference between Green Credit and Carbon Credit:
| Feature | Green Credit (GC) | Carbon Credit (CC) |
| Governing Law | Environment (Protection) Act, 1986 | Energy Conservation Act, 2001 |
| Beneficiaries | Individuals, communities, private industries | Industries and corporations |
| Objective | Encourages eco-friendly actions like afforestation, water conservation, and sustainable agriculture | Focuses on reducing carbon emissions by setting limits |
| Market Mechanism | Tradable on domestic exchanges | Traded in both national and international carbon markets |
| Co-benefits | Can qualify for carbon credits, contributing to reduced emissions | Cannot be converted into Green Credits |
Source: IE
Previous Year Question
With reference to the ‘New York, Declaration on Forests’, which of the following statements are correct?
1. It was first endorsed at the United Nations Climate Summit in 2014.
2. It endorses a global timeline to end the loss of forests.
3. It is a legally binding international declaration.
4. It is endorsed by governments, big companies and indigenous communities.
5. India was one of the signatories at its inception.
Select the correct answer using the code given below.
[UPSC Civil Services Exam – 2021 Prelims]
(a) 1, 2 and 4 only
(b) 1, 3 and 5 only
(c) 3 and 4 only
(d) 2 and 5 only
Answer: (a)