The Green Credit Program (GCP) was introduced by the Ministry of Environment, Forest and Climate Change (MoEF&CC) as part of India’s commitment to sustainability and climate action. It aligns with the LiFE (Lifestyle for Environment) movement, which was announced by the Prime Minister in 2021 to promote eco-conscious practices. The program was officially notified on October 13, 2023, under the Environment Protection Act, 1986.

What It Is About

GCP is a market-based mechanism designed to incentivize voluntary environmental actions across various sectors. It encourages participation from individuals, communities, industries, and companies to undertake activities that contribute to environmental conservation. The program initially focuses on water conservation and afforestation, with methodologies developed to award Green Credits based on measurable benchmarks. A digital platform has been set up to facilitate registration, verification, and trading of Green Credits.

Supporting India’s Net Zero Journey

India has set ambitious climate goals, including achieving net zero emissions by 2070. The GCP plays a crucial role in this journey by:

• Encouraging afforestation to enhance carbon sequestration.
• Promoting water conservation to ensure sustainable resource management.
• Creating a dynamic land bank for plantation activities, helping restore degraded lands.
• Engaging industries and individuals in climate-positive actions, fostering a culture of sustainability.

Incentives for Industries and Projects

Industries and projects can benefit from GCP in several ways:

• Green Credit Trading: Entities can earn Green Credits for undertaking environmental activities and trade them on a dedicated platform.
• Regulatory Compliance: Companies can use Green Credits to meet environmental regulations and enhance their sustainability credentials.
• Corporate Social Responsibility (CSR): Businesses can integrate GCP into their CSR initiatives, gaining recognition for their contributions to environmental conservation.
• Financial Incentives: Green Credits could potentially be monetized, offering financial benefits to participants.

The Indian Council of Forestry Research and Education (ICFRE) serves as the GCP Administrator, overseeing implementation, monitoring, and operations. With a structured framework and digital accessibility, GCP is set to drive India’s green transition while fostering economic and environmental sustainability.