Prime Minister Narendra Modi Friday launched an initiative focusing on generating Green Credits through plantation on degraded wasteland.
During a high-level event at the ongoing climate talks or COP28 in Dubai, he highlighted that the Green Credits Initiative surpasses the commercial nature of carbon credits.
What is the Green Credits Programme?
The Green Credits Programme, launched by the Environment Ministry in October this year, is an effort to create a market-based incentive for different kinds of environment-positive actions, not just for carbon emission reductions.
Such a market-based system already exists for carbon, at the national as well as international level, that allows trade in carbon credits. Companies, or nations, can claim carbon credits if they take action to reduce their carbon footprint. These credits can they be traded for money. Companies unable to achieve their emission standards pay to buy these credits and improve their performance.
Green Credits programme attempts to replicate this mechanism for other environmental actions, like water conservation or soil improvements. Methodologies and standards to measure and verify such actions are still being developed. The market would also need to be developed. As a starting point, it is envisaged that private companies would buy these green credits as part of their CSR obligations.
Unlike the carbon markets, which are more focused at industry and corporations, green credit programme can benefit individuals and communities as well.
At COP28, PM Modi offered the concept to the international community, in the hope to create a market for green credits at an international level, just like the one on carbon credits exists.