Green Credit Programme
Why it matters?
The Environment Ministry revised Green Credit Programme rules, awarding credits for tree plantation only after five years with 40% canopy density and survival. Credits are non-tradable, except within subsidiaries, and can be used for compensatory afforestation or CSR. So far, 57,986 hectares of degraded forest land are registered.
What you should know?
The Green Credit Programme (GCP) is a market-based initiative launched by the Prime Minister in November 2023 at COP28 in Dubai.
It is administered by the Ministry of Environment, Forest and Climate Change (MoEFCC).
Under the programme, participants (companies, groups, or individuals) earn green credits as a reward for undertaking activities such as:
tree plantation
water conservation
sustainable agriculture
waste management
air pollution reduction
mangrove conservation,
eco-mark certification.
These credits can be used for compensatory afforestation, fulfilling CSR requirements, or environmental, social, and governance (ESG) reporting.
Credits are non-tradable and non-transferable, except within subsidiary companies.
Under the revised rules notified on August 29, 2025, credits for tree plantation will be awarded only after five years.
Credits will be given only if a minimum canopy density of 40% and verified tree survival is achieved.
Earlier, the benchmark was 1,100 trees per hectare within two years of plantation.