Green Credit only after 40% canopy cover achieved over 5 years: Environment ministry | Latest News India

New Delhi: After achieving a minimum canopy density of 40% following at least five years of restoration activities in a degraded forest land parcel, an applicant may be eligible for the grant of Green Credit, a notification issued by the union environment ministry on Friday said.

The notification issued by the Union Environment Ministry refers to the methodology for calculating Green Credit for a plantation activity. (Unsplash/ Representative photo)

This Green Credit can thereafter be used for leadership indicators in environmental, social and governance (ESG) reporting by the company, the notification, which refers to the methodology for calculating Green Credit for a plantation activity, said.

The Centre had enacted the Green Credit Rules, 2023 under Sections 3, 6, and 25 of the Environment (Protection) Act, 1986 in October 2023. HT reported on February 27, 2024, that corporations and other private entities can take up plantations on degraded land—including open forest and scrubland, wasteland, and catchment areas—under the administrative control of states and identified by forest departments, according to an earlier notification by the union environment ministry.

Also read: What is Green Credit Initiative, launched by PM Modi at COP28 climate summit in Dubai?

These plantations will help generate Green Credits, which can be traded and used as a leadership indicator under corporate social responsibility, a notification issued on February 22, 2024, had said.

Now, the new notification has also provided a threshold for a plantation to be considered for Green Credit. “On completion of minimum five years of restoration activities in the degraded forest land parcel(s), and after achieving a minimum canopy density of forty per cent (40% canopy density), the applicant shall be eligible to submit a claim report in the format specified by the Administrator for award of Green Credit, and applicant shall be liable to pay the verification fee as specified by the Administrator in consultation with the Central Government,” the notification said, adding that “the Green Credit shall be calculated based on the vegetation status including the change in the canopy density and the number of surviving trees.”

The notification has also specified that “the minimum canopy density of forty per cent shall have to be achieved in the degraded forest land parcel for issuance of Green Credit and one Green Credit shall be awarded for each new tree of the age more than five years.”

On receipt of the claim report, the Administrator, based on the evaluation and verification of the forest restoration activity through designated agencies, may generate and issue Green Credit to the applicant. The Green Credit generated for compensatory afforestation or tree plantation under the Green Credit programme activity shall be non-tradable and non-transferable, except for the transfer between the holding company and its subsidiary companies.

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Further, the Green Credit generated under the Green Credit Programme may be exchanged once, for any of the three purposes specified: To meet the compliance of the compensatory afforestation in cases related to diversion of forest land for non-forestry purposes as laid down under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980, and the rules and guidelines framed thereunder; To meet the requirement under corporate social responsibility, as per the provisions of any law for the time being in force, based on cost incurred towards forest restoration activities; To meet the requirement of plantation of trees to fulfil the obligations in compliance with the approval of the project/activity being undertaken by the applicant person or entity, as per the provisions of any law for the time being in force.

Once the Green Credit is exchanged for any of the purposes mentioned above, it shall be deemed to have been extinguished to the extent such Green Credit has been used and, to that extent, it cannot be used again.

“The Green Credit generated in lieu of tree plantation under the said Rules may be used for reporting under environmental, social and governance leadership indicators as per the provisions of any law for the time being in force,” the notification added.

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