Green Credit Programme (GCP) – Criticisms

4. However, despite its ambitious objectives, the GCP has faced significant legal scrutiny and environmental criticism.
5. Critics argue that the program may inadvertently encourage forest land diversion, promote monoculture plantations, and undermine ecological integrity.
    

What is the Green Credit Programme (GCP)?

1. Launch : Officially launched on December 1, 2023 , during the COP28 Climate Conference in Dubai by Prime Minister Narendra Modi and UAE President Sheikh Mohammed bin Zayed Al Nahyan.
2. Purpose : To incentivize pro-planet actions in response to climate change and support Mission LiFE (Lifestyle for Sustainable Environment) .
3. Objective : Encourage voluntary investments by individuals, industries, and organizations in sectors like:

1. 1. Tree plantation
   2. Waste management
   3. Water conservation
   4. Soil moisture conservation
   5. Rainwater harvesting
   6. Eco-restoration of degraded lands

4. Green Credits : Tradable credits awarded for eco-friendly activities, which can be used to meet sustainability targets or legal obligations (e.g., compensatory afforestation under the Forest Conservation Act ).

Key Features of the GCP

1. Voluntary Participation :

1. 1. Open to individuals, corporates, public sector undertakings (PSUs), and other entities.
   2. Non-mandatory but encourages proactive participation.

2. Core Activities :

1. 1. Tree plantation
   2. Water conservation
   3. Waste management
   4. Soil moisture conservation
   5. Rainwater harvesting
   6. Eco-restoration of degraded lands
   7. Sustainable farming and biodiversity protection

3. Calculation of Green Credits :

1. 1. One tree = One green credit (subject to a minimum density of 1,100 trees per hectare).
   2. Credits are calculated based on local silvi-climatic conditions.

4. Trading of Green Credits :

1. 1. Credits can be traded on a domestic platform to meet sustainability targets or legal obligations.
   2. Listed companies can use green credits for ESG disclosures under SEBI regulations.

5. Operational Structure :

1. 1. Pilot Phase : Focuses on tree plantation and eco-restoration of degraded lands.
   2. ICFRE Role : Indian Council of Forestry Research and Education (ICFRE) verifies and processes green credit applications.
   3. Land Allocation : State forest departments identify degraded land parcels (≥5 hectares) for plantation activities.

1. 2,364 land parcels (totaling 54,669.46 hectares ) registered across 17 states.
2. 384 entities registered, including 41 PSUs/CPSUs .
3. Plantation work must be completed within 2 years after payment.

1. Incentivizing Forest Land Diversion

1. Critics argue that the GCP may encourage industries and developers to divert forest land for industrial projects by purchasing green credits instead of preserving existing forests.
2. This could lead to the substitution of old-growth forests with newly planted lands, which lack the same ecological benefits (e.g., biodiversity, carbon sequestration).

2. Degraded Lands & Ecological Impact

1. The program promotes plantations on degraded lands, scrublands, and wastelands , which often provide important ecological services (e.g., carbon sequestration, wildlife habitat).
2. Converting these areas into monoculture plantations could result in:

1. 1. Loss of biodiversity
   2. Disruption of local ecosystems
   3. Reduced ecological resilience

3. Conflict with Forest Conservation Laws

1. The Forest Conservation Act (Van Adhiniyam, 1980) mandates land-for-land compensation for diverting forest land for development purposes.
2. The GCP allows the use of degraded forest land for compensatory afforestation, undermining the principle of using non-forest land for compensation.
3. Critics argue this may lead to compensating old forests with newly planted forests, which cannot replicate the ecological value of mature forests.

4. Supreme Court Intervention

1. The Supreme Court is currently hearing an intervention application challenging the GCP.
2. Concerns include:

1. 1. Long-term survival of plantation efforts
   2. Ecological validity of plantations raised under the program

3. Environmentalists argue that arbitrary tree plantation efforts cannot replace old-growth forests , which offer vital ecological services.

5. Legal & Structural Issues

1. The Ministry of Law and Justice has raised concerns about the legality of the GCP's business model, particularly regarding:

1. 1. The trade of green credits
   2. Whether the system is legally viable in the long term

2. Questions remain about the program's alignment with existing environmental laws and its ability to deliver tangible ecological benefits.

6. Environmental Concerns

1. Over 100 environmental organizations and 400 citizens filed a petition in April 2024 to rollback the GCP.
2. Key concerns:

1. 1. Arbitrary plantation efforts may harm ecosystems rather than restore them.
   2. Monoculture plantations could exacerbate ecological imbalances.
   3. Lack of focus on preserving natural forests and their unique biodiversity.