Understanding the Green Credit Rules: Promoting Sustainable Tree Plantation

In 2023, the Central Government introduced the Green Credit Rules, aiming to incentivize tree plantation and enhance the nation’s green cover. These rules, formulated on the recommendation of the Administrator, outline a structured methodology for calculating green credits, particularly concerning tree plantation initiatives.

Under these rules:

  1. Identification of Degraded Land: The Forest Department of each State and Union territory is tasked with identifying degraded land parcels suitable for tree plantation, promoting activities to increase green cover.
  2. Criteria for Land Parcel: Identified parcels must be free from encumbrances and have a size of five hectares or more.
  3. Application Process: Individuals or entities interested in generating Green Credit must apply to the Administrator.
  4. Assignment and Proposal Submission: The Administrator assigns suitable land and requires applicants to submit tree plantation proposals.
  5. Issuance of Demand Note: Upon proposal submission, a demand note is issued, detailing costs to be paid within a specified period.
  6. Payment and Execution: Applicants fulfill payment obligations within the stipulated timeframe, enabling the Forest Department to commence tree plantation.
  7. Tree Plantation Execution: The Forest Department carries out plantation according to specified plans, completing the task within two years of payment.
  8. Report Submission and Certification: Upon completion, the Forest Department submits a report and issues a certificate to the applicant.
  9. Evaluation and Green Credit Issuance: The Administrator evaluates the plantation activity and issues Green Credits based on the number of trees planted and completion certification.
  10. Calculation of Green Credit: Credits are calculated at one per tree, subject to a minimum density requirement based on local conditions.
  11. Utilization of Green Credit: Credits can be utilized to meet compensatory afforestation requirements or reported under relevant environmental and social responsibility frameworks.

These rules facilitate a systematic approach to incentivize and monitor tree plantation efforts, aligning with broader environmental sustainability goals. By promoting responsible land use and incentivizing tree plantation, the Green Credit Rules contribute to a greener and more sustainable future.

Download – Green Credit Rules


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