The Ministry of Environment, Forest and Climate Change
(“MoEFCC”) has recently issued The Green Credit Rules
2023 (“
Rules”) in October 2023, which formally
established the Green Credit Program
(“GCP”) for India. Initially proposed
as
draft rules in June 2023, this program introduces a
market-based approach to incentivise eight identified environmental
activities. The main objective was to establish a mechanism where
participants could earn incentives in the form of ‘Green
Credits'.
The proposed
GCP will be implemented in phases, with the initial phase
focusing on water management and afforestation. Subsequent phases
will cover activities such as sustainable agriculture, waste
management, air pollution reduction, mangrove conservation and
restoration, eco mark label development, and sustainable building
and infrastructure. These activities will be undertaken gradually
in the later phases of the programme.
