Important for
Prelims: Geography and environment
Mains: General Studies II, Paper IV
Why in News?
- The government has recently unveiled an innovative and voluntary Green Credit program designed to reward and incentivize individuals and entities for their positive environmental contributions.
What is Green Credit?
About:
- Green Credit refers to a unit of incentive provided to individuals and entities engaged in activities that deliver a positive impact on the environment.
- It is a voluntary program initiated by the government to incentivize various stakeholders in contributing to environmental preservation and sustainable practices.
- Also, this program is part of the broader ‘LiFE’ campaign (Lifestyle for Environment), and it encourages and rewards voluntary environmentally-positive actions.
Covered Activities:
- The Green Credit program encompasses eight key types of activities aimed at enhancing environmental sustainability:
- Tree Plantation: Planting trees to increase green cover and combat deforestation.
- Water Management: Implementing strategies to efficiently manage and conserve water resources.
- Sustainable Agriculture: Promoting eco-friendly and sustainable agricultural practices.
- Waste Management: Implementing effective waste management systems to reduce environmental pollution.
- Air Pollution Reduction: Initiatives aimed at reducing air pollution and improving air quality.
- Mangrove Conservation and Restoration: Protecting and restoring mangrove ecosystems for ecological balance.
Earning and Calculation of Green Credit:
- To earn Green Credits, participants need to register their environmental activities through a dedicated website. The activities will then be subject to verification by a designated agency.
- Based on the agency’s report, the administrator will grant the applicant a certificate of Green Credit.
- The calculation of Green Credit is determined by factors such as resource requirements, scale, scope, size, and other relevant parameters necessary to achieve the desired environmental outcomes.
Green Credit Registry and Trading Platform:
- A critical component of the program is the establishment of a Green Credit Registry, which will help track and manage earned credits.
- Additionally, the administrator will create and maintain a trading platform, enabling the trading of Green Credits on a domestic market.
Independence from Carbon Credits:
- It is important to note that the Green Credit program operates independently of the carbon credits provided under the Carbon Credit Trading Scheme, 2023, which is governed by the Energy Conservation Act of 2001.
- An environmental activity generating Green Credits may have climate co-benefits, such as reducing or removing carbon emissions, which can potentially lead to the acquisition of carbon credits in addition to Green Credits.
What are the Concerns Regarding Green Credit Programme?
- Verification and Validation Complexity
- Risk of Greenwashing
- Compatibility with Carbon Credits
- Accounting for Regional Differences
What are the Other Government Initiatives to Promote the Green Economy?
- Sovereign Green Bond
- Green Energy Corridor
- National Green Hydrogen Mission
Practice Questions for Prelims
Regarding “carbon credits”, which one of the following statements is not correct? (2011)
a) The carbon credit system was ratified in conjunction with the Kyoto Protocol
b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota
c) The goal of the carbon credit system is to limit the increase of carbon dioxide emission
d) Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme.
Ans. d)
Mains Practice Question
Should the pursuit of carbon credits and clean development mechanisms set up under UNFCCC be maintained even though there has been a massive slide in the value of a carbon credit? Discuss with respect to India’s energy needs for economic growth. (2014)
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