Source: The Hindu (Page No 14)
Relevance: GS-III Sustainable Development, Investment
Prelims Take away: Green Credit
Mains Take away: Significance of Green Credit
Why In News:
The government has introduced a special program that allows individuals or entities to earn Green Credits and trade them on a dedicated exchange. Green Credits are units of incentives provided for specific activities that have a positive impact on the environment.
Green Credit Program
Nature of the Program: The Green Credit program is a follow-up action of the 'LiFE' (Lifestyle for Environment) campaign and is voluntary in nature.
Covered Activities: The program covers eight types of activities that deliver positive environmental impacts. These activities include tree plantation, water management, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, and restoration.
Obtaining Green Credit: To earn Green Credits, individuals or entities need to register their environmental activities through a designated website. These activities will be verified by a designated agency, and based on their reports, the administrator will grant a Green Credit certificate.
Calculation of Green Credit: The calculation of Green Credits is based on factors such as resource requirements, scale, scope, size, and other relevant parameters necessary to achieve the desired environmental outcomes.
Green Credit Registry: A Green Credit Registry will be established to keep track of the earned credits.
Trading Platform: The administrator will establish and maintain a trading platform where individuals or entities can trade their Green Credits.
Incentivizing Environmentally-Positive Actions: The program aims to incentivize environmentally-positive actions through a market-based mechanism. The Green Credits generated can be traded on a domestic market platform.
Compliance with Laws: The program encourages industries, companies, and other entities to meet their obligations under existing laws. However, Green Credits generated or procured to fulfill legal obligations cannot be traded.
Independence from Carbon Credits: The Green Credit program is separate from the carbon credits provided under the Carbon Credit Trading Scheme, 2023, governed by the Energy Conservation Act, 2001. However, activities generating Green Credits may have climate co-benefits, such as reducing or removing carbon emissions and may also be eligible for carbon credits.