The National Green Credit Programme (GCP) is an innovative, market-based mechanism. It has been launched by the Ministry of Environment, Forest and Climate Change (MoEFCC) in October 2023. It is designed to encourage voluntary environmental actions across multiple sectors by awarding “green credits” for eco-friendly activities.
Unlike carbon credits, which focus mainly on reducing greenhouse gas emissions, the GCP covers a broader range of environmental initiatives such as tree plantation, water conservation, waste management, air pollution reduction, and mangrove restoration.
The programme is aligned with the LiFE (Lifestyle for Environment) initiative announced by the Prime Minister at COP26 and aims to build a “Pro-Planet People” movement.
Why was the Green Credit Programme Introduced?
India faces increasing challenges from climate change, deforestation, air pollution, and biodiversity loss. While policies like the Environment Protection Act, 1986 and the National Environment Policy, 2006 already exist, there was a need for a mechanism that:
- Encourages voluntary participation in conservation efforts.
- Provides financial incentives for sustainable actions.
- Expands the scope of tradable credits beyond carbon to include other environmental measures.
- Helps India meet its international commitments, such as those under the Paris Agreement and the UN Decade on Ecosystem Restoration (2021–2030).
How does the Green Credit Programme Work?
The GCP functions through a structured framework of registration, implementation, monitoring, verification, and credit issuance.
- Registration – Entities (individuals, companies, or communities) register their projects through the GCP online portal.
- Implementation – Activities such as tree plantation are carried out, often by state forest departments or Central Public Sector Undertakings (CPSUs).
- Monitoring & Verification – The Indian Council of Forestry Research and Education (ICFRE) monitors and verifies the progress.
- Credit Issuance – Once activities are assessed and approved, green credits are issued based on specific methodologies.
- Trading & Use – Credits are stored in a Green Credit Registry and can be traded on a domestic market platform.
What Activities are Covered Under the Green Credit Programme?
The GCP recognizes eight key categories of environmental activities:
- Tree Plantation – Planting trees on degraded lands to enhance green cover.
- Water Management – Initiatives to conserve, recycle, and use water efficiently.
- Sustainable Agriculture – Promoting organic farming and reducing chemical use.
- Waste Management – Implementing systems for waste reduction, segregation, and recycling.
- Air Pollution Reduction – Measures to improve air quality, such as reducing emissions.
- Mangrove Conservation & Restoration – Protecting coastal ecosystems and biodiversity.
- Ecosystem Restoration – Reviving degraded forests and natural habitats.
- Other Pro-Planet Practices – Encouraging individual and community-driven eco-actions.
How are Green Credits Earned and Calculated?
Earning credits under the GCP follows a transparent process:
- Projects are registered online.
- A designated agency verifies activities.
- Credits are granted as per measurable outcomes.
For instance:
- Tree plantation projects: After two years of monitoring, if trees survive and grow successfully, each tree is counted as one green credit.
- Other activities: Credits are calculated based on resource use, scope, size, and measurable environmental outcomes.
Get ready to crack government job exams with leading educators
How can Green Credits be Used?
Green credits serve multiple purposes:
- Offsetting Obligations – They can be used for compensatory afforestation by organizations diverting forest land.
- ESG & CSR Compliance – Companies can report credits as part of their Environmental, Social, and Governance (ESG) disclosures or to meet Corporate Social Responsibility (CSR) obligations.
- Market Trading – Credits can be traded, allowing organizations without projects to buy credits to meet their sustainability goals.
How is the Green Credit Programme Different from Carbon Credits?
Carbon credits mainly deal with reducing greenhouse gas emissions and are managed under the Carbon Credit Trading Scheme, 2023, which comes from the Energy Conservation Act, 2001. On the other hand, green credits cover a wider range of environmental actions such as water conservation, sustainable farming, waste management, and mangrove restoration. In some cases, a single activity may create co-benefits, meaning it can earn both carbon credits and green credits at the same time.
What are the Benefits of the Green Credit Programme?
The benefits of the Green Credit Programme are as follows:
- Encourages Participation: Involves individuals, communities, businesses, and governments.
- Financial Incentives: Creates a tradable market for sustainability actions.
- Supports Climate Goals: Helps India achieve COP26 and Paris Agreement commitments.
- Strengthens ESG Practices: Encourages corporate responsibility and sustainable reporting.
- Ecosystem Restoration: Moves beyond tree count to focus on ecosystem health.
What are the Concerns and Challenges?
While promising, the GCP faces certain criticisms and risks:
- Impact on Forest Ecology – Large-scale plantations on scrublands or grasslands may harm biodiversity.
- Creation of ‘Green Deserts’ – Plantations focused only on tree count may ignore ecosystem diversity.
- Methodological Gaps – Lack of clarity in credit calculation and ecological assessment.
- Pressure on Wastelands – Afforestation in grasslands may displace native species and disrupt ecological balance.
- Monitoring & Transparency – Ensuring fair verification and accountability remains a challenge.
What is the Way Forward?
To ensure long-term success, the programme should:
- Adopt Biodiversity-Based Afforestation – Focus on planting native species rather than monocultures.
- Integrate Technology – Use satellite imagery and remote sensing for monitoring.
- Ensure Transparency – Define clear terms like “degraded land” and share methodologies openly.
- Promote Collaboration – Encourage participation from NGOs, communities, and private players.
- Balance Development and Ecology – Ensure plantations and projects complement natural ecosystems.
How does the Green Credit Programme Align with Global and National Goals?
At the national level, the Green Credit Programme supports India’s environmental policies such as the National Environment Policy (2006), the Energy Conservation Act (2001), and various afforestation measures. At the global level, it matches with the goals of the UN Decade on Ecosystem Restoration (2021–2030) and also helps India meet its promises under the Paris Agreement.
In terms of climate finance, the programme works alongside tools like Sovereign Green Bonds and the Carbon Credit Trading Scheme, making India’s efforts more comprehensive and impactful.
Key Takeaways
| Aspect | Details |
| Launched By | Ministry of Environment, Forest and Climate Change (MoEFCC), October 2023 |
| Administrator | Indian Council of Forestry Research and Education (ICFRE) |
| Objective | To incentivize voluntary environmental actions through a market-based approach |
| Activities Covered | Tree plantation, water management, sustainable agriculture, waste management, air pollution reduction, mangrove restoration |
| Mechanism | Registration – Implementation – Monitoring – Credit issuance – Trading |
| Uses of Credits | Compensatory afforestation, ESG & CSR compliance, market trading |
| Difference from Carbon Credits | Covers broader environmental actions beyond CO₂ reduction |
| Concerns | Risk of monocultures, green deserts, unclear methodologies, ecological impact |
| Way Forward | Biodiversity-based afforestation, tech-enabled monitoring, transparent definitions |
Questions Based on National Green Credit Programme (GCP)
Q1. The National Green Credit Programme was launched in which year?
a) 2020
b) 2021
c) 2022
d) 2023
e) 2024
Q2. Which ministry is responsible for the Green Credit Programme?
a) Ministry of Agriculture
b) Ministry of Environment, Forest and Climate Change
c) Ministry of Rural Development
d) Ministry of New and Renewable Energy
e) Ministry of Finance
Q3. Who administers the Green Credit Programme?
a) NITI Aayog
b) Indian Forest Service
c) Indian Council of Forestry Research and Education (ICFRE)
d) Central Pollution Control Board
e) UNEP
Q4. Which initiative is the GCP aligned with?
a) Make in India
b) LiFE (Lifestyle for Environment)
c) Swachh Bharat Abhiyan
d) National Solar Mission
e) AMRUT
Q5. Which of the following is NOT covered under GCP activities?
a) Tree Plantation
b) Water Management
c) Sustainable Agriculture
d) Air Pollution Reduction
e) Space Research
Also Read:
Q6. How many years after plantation does ICFRE assess tree survival for credits?
a) 1 year
b) 2 years
c) 3 years
d) 4 years
e) 5 years
Q7. Which statement is correct about Green Credits?
a) They are the same as Carbon Credits
b) They cover only air pollution activities
c) They can be used for CSR and ESG compliance
d) They are issued only by private companies
e) They replace carbon credits
Q8. What risk is associated with large-scale monoculture plantations under GCP?
a) Creation of Green Deserts
b) Increased soil fertility
c) Boosting biodiversity
d) Improved groundwater recharge
e) None of the above
Q9. Which global initiative does GCP align with?
a) UN Decade on Ecosystem Restoration (2021–2030)
b) Kyoto Protocol only
c) Paris Club Agreement
d) World Trade Organization (WTO) rules
e) SAARC Convention
Q10. Which of the following best describes the Green Credit Programme?
a) A loan scheme for green projects
b) A trading system for voluntary environmental actions
c) A subsidy programme for renewable energy
d) A plantation-only initiative
e) None of the above
Answer Key
| Question No. | Correct Answer |
| Q1 | d) 2023 |
| Q2 | b) Ministry of Environment, Forest and Climate Change |
| Q3 | c) Indian Council of Forestry Research and Education (ICFRE) |
| Q4 | b) LiFE (Lifestyle for Environment) |
| Q5 | e) Space Research |
| Q6 | b) 2 years |
| Q7 | c) They can be used for CSR and ESG compliance |
| Q8 | a) Creation of Green Deserts |
| Q9 | a) UN Decade on Ecosystem Restoration (2021–2030) |
| Q10 | b) A trading system for voluntary environmental actions |
- Aatmanirbharta in Pulses Achieving Self-Reliance in Pulse Production
- What is One Nation One Subscription (ONOS) Scheme
- Rural Prosperity & Resilience Programme Transforming India’s Rural Economy
- Samagra Shiksha 2.0 Features, Objectives and Benefits
- Green Credit Programme, Earn Rewards for a Greener World
- National Data Governance Policy Features, Objectives and Benefits
Priti Palit, is an accomplished edtech writer with 4+ years of experience in Regulatory Exams and other multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti’s expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.