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Green Credit Programme: An Encouraging Step Towards Sustainable Living

The success of the Green Credit Programme could also serve as a blueprint for other nations in their fight against climate change.

India CSR by India CSR
in News
Reading Time: 4 mins read
Green Credit Programme: An Encouraging Step Towards Sustainable Living

Green Credit Programme

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In the face of climate change, the India Government has launched the Green Credit Programme, incentivising eco-friendly actions and promoting a sustainable lifestyle via the ‘LiFE’ movement. This article examines this initiative, its aims, execution, and potential impact on India’s environment.

Nirbhay Lumde

Introducing the Green Credit Programme

The Government of India’s recent notification introducing the Green Credit Programme is a significant move towards combatting climate change and promoting sustainable living. This domestic voluntary market mechanism aims to incentivise individuals, organisations, and industries for their environment-friendly actions through issuing and trading Green Credits. By fostering a grassroots movement called ‘LiFE’ (Lifestyle for Environment), this initiative seeks to propagate a healthy and sustainable lifestyle based on conservation, moderation, and traditional values.

Key Goals of the Green Credit Programme

The Green Credit Programme aims to achieve two key goals. Firstly, it establishes a market-based mechanism to provide incentives through Green Credits to various stakeholders, including individuals, farmer-producer organisations, cooperatives, industries, urban and rural local bodies, and organisations. These incentives encourage positive environmental actions and contribute to the vision of “Mission Life.” Secondly, the programme intends to create a mass movement that promotes pro-planet behaviour among people and entities, fostering a sustainable and environmentally conscious society.

Phased Implementation of the Green Credit Programme

The programme will be implemented in a phased and iterative approach, starting with two to three activities: tree plantation, water conservation, sustainable agriculture, waste management, air pollution reduction, mangrove conservation and restoration, eco-mark certification, and sustainable building and infrastructure.

Establishing Guidelines for Green Credits

An effort will be made to build specific thresholds, benchmarks, and measurement parameters to generate and issue Green Credits. The programme aims to ensure fungibility and equivalence of Green Credits across sectors, promoting fairness and transparency. Accredited Green Credit Verifiers will be responsible for independently verifying environmental actions and issuing Green Credits.

Governance of the Green Credit Programme

The governance of the Green Credit Programme will be overseen by a Steering Committee comprising representatives from relevant ministries/departments, industry associations, domain experts, and other stakeholders. The Indian Council of Forestry Research and Education will act as the Administrator responsible for implementing, managing, and monitoring the programme. The Administrator’s functions include developing guidelines, establishing technical committees, and accrediting entities. It also includes maintaining the Green Credit Registry and facilitating the trading of Green Credits through an accredited Trading Service Provider.

Participation and Convergence of Environmental Actions

The Green Credit Programme’s success relies on all stakeholders’ participation. The Steering Committee will recommend measures to generate voluntary demand for Green Credits nationwide. Entities registered for Accredited Compensatory Afforestation will also be eligible to register under the programme, further promoting the convergence of environmental actions.

Potential Impact of the Green Credit Programme

The introduction of the Green Credit Programme by the Government of India is a commendable step towards promoting sustainability and addressing climate change. This market-based mechanism has the potential to drive positive behavioural changes, encouraging individuals and organisations to adopt environment-friendly practices and contribute to a healthier and more sustainable way of life. With its phased implementation, diverse activities, and focus on transparency and verification, the programme holds great promise in the global fight against climate change.

Green Credit Programme’s Global Vision

Aligned with India’s domestic and global vision for LiFE (Lifestyle for the Environment), the ‘green credit programme’ under the Environment (Protection) Act aims to promote environmentally sustainable practices and actions by companies, individuals, and local bodies. It incentivises such actions and mobilises additional resources for these activities.

Role of the Green Credit Programme

The Green Credit Programme is an effective tool to incentivise voluntary environmental actions by various stakeholders, including individuals, private sectors, small-scale industries, cooperatives, forestry enterprises, and farmer-producer organisations. The programme encourages and rewards these stakeholders for their environmental efforts by establishing a competitive market-based approach to Green Credits.

Conclusion

The introduction of the Green Credit Programme signals a progressive step towards environmental sustainability and climate change mitigation in India. By fostering environment-friendly actions and instilling a sense of responsibility towards the environment, this programme serves as an innovative strategy to encourage sustainable practices at an individual, organisational, and industrial level.

With the right implementation, this programme holds immense promise in driving a significant change in environmental behaviour and contributing to a healthier and more sustainable future.


Nirbhya Lumde. Image:IndiaCSR
Nirbhya Lumde. Image:IndiaCSR

About the Author

Nirbhay Lumde, Director – ESG, CGI Asia Pacific Global Delivery Centers of Excellence, and his views are personal. He is also the author of Corporate Social Responsibility in India: A Practitioner’s Perspective.

Tags: Green CreditGreen Credit ProgrammeLiFE (Lifestyle for the Environment)Nirbhay Lumde

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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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