Introduction: The Green Credit Rules, 2023, launched under the ‘LiFE’ (Lifestyle for Environment) movement by the Union Ministry of Environment, Forest and Climate Change (MoEFCC). It Introduce two pioneering initiatives: the Green Credit Program (GCP) and the Ecomark Scheme. These initiatives align with the LiFE concept, promoting eco-conscious practices rooted in tradition and conservation.
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Mechanism:
The GCP operates as an innovative market-based mechanism, fostering voluntary environmental actions across various sectors involving individuals, communities, private industries, and companies. Focused primarily on water conservation and afforestation, the GCP seeks to encourage positive actions that benefit the environment.
Definition:
Green Credit, as defined under these rules, represents a singular incentive unit awarded for specific activities that positively impact the environment. Whenever an individual or institution undertakes actions beneficial for the environment, these actions earn them green credits. These credits are tradable in the market, allowing their transfer between different entities through trading.
Objectives of the Green Credit Rules include:
Incentivizing Environmentally Positive Actions:
The primary aim is to incentivize actions that have a positive impact on the environment. A market-based approach achieves this by rewarding participants with green credits for specific environmentally friendly activities.
Creation of Tradable Green Credits:
The program generates green credits based on environmentally conscious actions by individuals or entities. Entities who’ve earned these credits can trade or sell them to others, as they are made tradable on a domestic market platform.
Encouraging Compliance and Voluntary Measures:
The Green Credit Program encourages industries, companies, and other entities to fulfill their environmental obligations mandated by existing laws.
Exclusion of Tradable Obligation-based Credits:
Green credits acquired to meet legal obligations cannot be traded. This ensures the program’s focus remains on incentivizing voluntary environmental actions rather than mandatory compliance.
The implementation of these rules aims to foster a culture of environmental responsibility and encourage a proactive approach towards sustainable practices.
