India releases draft Green Credit Programme Implementation Rules 2023

India's Ministry of Environment, Forest and Climate Change released a draft notification, the Green Credit Programme Implementation Rules 2023, creating a domestic voluntary market issuing Green Credits for environment-positive actions. The scheme opens a tradable incentive across eight sectors, including sustainable agriculture, for Indian individuals, organisations and entities.

India's Ministry of Environment, Forest and Climate Change unveiled a draft notification titled Green Credit Programme Implementation Rules 2023, establishing a domestic voluntary market mechanism awarding Green Credits for environment-positive activities. Initial eligible sectors are tree plantation, water conservation, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, eco-mark certification, and sustainable building and infrastructure. The Indian Council of Forestry Research and Education is designated Administrator, with a Steering Committee, accredited Green Credit Verifiers, registered entities, a dedicated registry, a Trading Platform and a Knowledge and Data Platform.

Farmers and agricultural entities are explicitly addressed through a sustainable agriculture based green credit provision, rewarding practices such as Enhanced Rock Weathering, which applies ground basalt or olivine to fields for mineral carbonation and CO2 sequestration; precision agriculture using satellite imagery, drones and sensors; and agroforestry integrating trees with crops or livestock. Startups and service firms providing precision-agriculture guidance can earn fees as a percentage of additional farmer income and Green Credits. Verifiers, registered entities and a Trading Service Provider operate the market.

Stakeholders should submit comments while the draft notification remains open for public consultation, as inputs will shape the final framework. Agricultural producers, agritech startups and corporates should assess which eligible activities they can register, prepare for independent verification by accredited Green Credit Verifiers, and monitor the Administrator's forthcoming guidelines, committee structures and registry rollout. Entities should evaluate the Trading Platform's liquidity mechanics and the planned expansion to additional activities in subsequent phases.

Key figure — Initial eligible sectors: eight, including sustainable agriculture and tree plantation