What’s in the news?
- The Union Ministry of Environment, Forests and Climate Change has launched the ‘green credit’ programme, a first-of-a-kind market-based instrument designed to incentivise individuals, industries and local bodies for their voluntary environmental actions across diverse sectors.
- The programme is a domestic voluntary market mechanism, where a green credit serves as a singular unit of a credit provided for each specified activity.
- The green credits will be tradable and those earning them will be able to put these credits up for sale on a proposed domestic market platform.
- To get the Green Credit, one needs to register the activity with the administrator through a website. The activity will then be verified by a designated agency and based on its report, the administrator shall grant the applicant a certificate of Green Credit.
- The calculation of green credit in respect of any activity undertaken shall be based on equivalence of resource requirements, parity of scale, scope, size and other relevant parameters required to achieve the desired environmental outcome.
- This programme will cover eight types of activities — tree plantation, water management, sustainable agriculture, waste management, air pollution reduction, and mangrove conservation and restoration.