Green Credit Rules 2023

Central Government issued the Green Credit Rules, 2023, through an official notification. The primary aim of this program is to foster environmental conservation and sustainability using market-driven mechanisms. This initiative represents an innovative approach, harnessing a competitive market system to incentivize and promote environmentally responsible actions among a diverse array of stakeholders.

Key Elements:

  1. Tradable Green Credits: The program’s core objective is to generate “green credits” via various environmentally beneficial activities and facilitate their exchange on a domestic market platform. These credits essentially serve as incentives for specific actions that positively impact the environment.

  2. Compliance Encouragement: The Green Credit program incentivizes industrial enterprises, companies, and other entities to fulfill their pre-existing responsibilities under environmental regulations. Simultaneously, it motivates individuals and organizations to voluntarily undertake environmentally friendly initiatives, either generating or procuring green credits.

  3. Exemption for Legal Obligations: Green credits obtained or created to fulfill obligatory requirements under current environmental laws are not transferable. This safeguards the primary intent of green credits, which is to stimulate voluntary environmental actions.

Crucially, this initiative is aligned with the Government of India’s broader “LiFE” mission, which stands for “Lifestyle for Environment.” LiFE is a grassroots movement aimed at safeguarding and preserving the environment while yielding environmental and climate advantages. It places a strong emphasis on promoting a healthy, sustainable way of life, rooted in traditional values of conservation and moderation, all while nurturing eco-friendly and sustainable development.


It is important to distinguish the Green Credit program from the 2023 Carbon Credit Trading Scheme, established under the Energy Conservation Act of 2001. Although both initiatives revolve around environmental activities, the Green Credit program operates independently from the Carbon Credit Trading Scheme.

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