In a major move towards promoting sustainable practices and rewarding environment-positive actions, the Ministry of Environment, Forest and Climate Change in India has unveiled a draft notification for the implementation of the Green Credit Programme. This domestic voluntary market mechanism aims to create a market-based system that provides incentives in the form of Green Credits to individuals, organizations, and sectors actively engaged in activities with a positive impact on the environment.
The Green Credit Programme, as outlined in the draft notification titled “Green Credit Programme Implementation Rules 2023,” seeks to address pressing environmental challenges while fostering a pro-planet mindset among citizens and entities. By encouraging and acknowledging sustainable actions, the program aims to accelerate India’s journey towards a greener and more sustainable future.
Under this program, eligible activities from various sectors, including tree plantation, water conservation, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, eco-mark certification, and sustainable building and infrastructure, will be identified. These sectors have been chosen for initial implementation, with the intention of expanding to other activities in subsequent phases.
To ensure transparency and credibility, the draft notification outlines a comprehensive framework for the implementation of the Green Credit Programme. It includes provisions for accredited Green Credit Verifiers, registered entities, a dedicated registry, and third-party certifiers. Accredited entities will be responsible for conducting independent verification of green credit activities, while registered entities will be eligible for the generation and issuance of Green Credits.
The Green Credit Programme will be overseen by a Steering Committee, which will provide guidance and approvals for the implementation procedures, guidelines, and processes. A dedicated Administrator, the esteemed Indian Council of Forestry Research and Education, will be responsible for managing and operating the program. The Administrator will develop guidelines, establish committees, accrediting entities, issue Green Credits, and maintain the registry.
Additionally, the Green Credit Programme will feature a Trading Platform, facilitated by an accredited Trading Service Provider, allowing for the exchange of Green Credits between participating entities. This platform will enhance liquidity and foster engagement within the program, enabling entities to leverage their environment-positive actions for further benefits.
Furthermore, a Knowledge and Data Platform will be developed to provide transparency and disseminate sectoral progress achieved under the Green Credit Programme. This platform will serve as a valuable resource, collating data from the Green Credit Registry and sharing information on achievements, best practices, and capacity-building initiatives.
Agriculture plays a crucial role in reducing greenhouse gas (GHG) emissions and combating climate change. By implementing sustainable practices and adopting innovative techniques, the agricultural sector has the potential to make significant contributions to global emission reduction efforts.
According to an insight paper published by Praveen Anant, Partner at JointValues, an ESG research and services company, “the implementation of the green credit scheme empowers farmers to earn additional income while actively combating climate change. By adopting new techniques and employing better agronomy practices in the field, farmers can contribute to both their financial well-being and the global fight against climate change.”
As part of the Green Credit Programme, the draft notification highlights the provision for “sustainable agriculture based green credit,” recognizing the crucial role of farmers in promoting sustainable practices and mitigating climate change. Under this provision, farmers engaging in activities that contribute to sustainable agriculture will be eligible to earn Green Credits.
One such innovative technique that farmers can adopt to earn credits is the deployment of the Enhanced Rock Weathering (ERW) technique. ERW involves the application of finely ground rock materials, such as basalt or olivine, to agricultural fields. When these rocks react with carbon dioxide (CO2) in the air and water, they undergo a chemical process known as mineral carbonation. This process effectively captures and stores CO2 in the form of stable carbonate minerals.
By utilizing ERW, farmers can not only improve soil health but also offset greenhouse gas emissions. The technique not only enhances crop productivity but also promotes long-term carbon sequestration. Farmers implementing ERW can earn Green Credits based on the amount of CO2 sequestered and the positive impact on soil quality.
Another project that falls under the “sustainable agriculture based green credit” provision is the adoption of precision agriculture techniques. Precision agriculture involves the use of advanced technologies such as satellite imagery, drones, and sensors to optimize crop management practices. By precisely monitoring soil moisture, nutrient levels, and crop health, farmers can make informed decisions regarding irrigation, fertilization, and pest management. This approach reduces resource wastage, minimizes the use of chemical inputs, and improves overall efficiency in farming operations. Precision agriculture not only offers significant environmental benefits but also holds tremendous potential as a business opportunity for startups and firms providing guidance and services to farmers. These entities can assist farmers in implementing precision agriculture practices, offering expertise and technological solutions. By charging a fee based on a percentage of the additional income generated by the farmer through increased yields and the Green Credits earned, they ensure a mutually beneficial arrangement for both the farmers and the precision agriculture service providers.
Additionally, sustainable agroforestry practices can also contribute to earning Green Credits. Agroforestry involves the integration of trees and shrubs with agricultural crops or livestock systems. This approach provides multiple benefits such as improved soil fertility, enhanced biodiversity, and increased resilience to climate change. Farmers adopting agroforestry practices can earn Green Credits based on the area of land dedicated to tree planting, the diversity of tree species, and the positive ecological impact.
These examples demonstrate how farmers can actively participate in the Green Credit Programme by implementing sustainable agriculture practices. By deploying techniques like Enhanced Rock Weathering, adopting precision agriculture methods, and embracing agroforestry, farmers can contribute to mitigating climate change, conserving natural resources, and promoting ecological balance.
The draft notification marks a significant step towards incentivizing sustainable practices and fostering environmental stewardship in India. Once implemented, the Green Credit Programme has the potential to harness the collective efforts of individuals, organizations, and sectors to create a greener and more sustainable future for the nation.
The draft notification is currently open for public comments and suggestions, welcoming inputs from stakeholders and experts to ensure a robust and effective implementation of the Green Credit Programme.