Context

The Green Credit Programme has raised concerns from experts due to their potential adverse impact on forest ecology. 

About Green Credits

• Green Credit Programme: It was initiated by the Environment Ministry in October 2023 and presents a market-based mechanism to incentivize individuals and companies for their contributions to environmental and ecological restoration. 
• Aim: The programme aims to incentivize green and sustainable actions among various stakeholders, fostering a culture of environmental responsibility.
• Role of Incentives: By offering incentives such as green credits, the programme encourages participation in activities like water conservation and afforestation, involving both individuals and corporations.

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Major Concerns Associated with Green Credit Programme

• Impact on Forest Ecosystems: Afforestation efforts must consider potential negative consequences, such as monocultures and unsuitable vegetation for specific regions.
• Challenges in Implementation: Concerns have been raised regarding its potential to circumvent existing environmental laws, particularly those related to forest conservation.
  • The programme’s potential to bypass existing environmental laws, such as the Forest Conservation Act, is highlighted as a significant issue.
• Fungibility of Credits: One of the major challenges lies in the lack of fungibility among different types of green credits, making it difficult to equate various environmental benefits on the same platform.
• Challenges in Measurement: Recognition of measurement difficulties, particularly regarding biodiversity impact assessment requires acknowledging the evolving scientific understanding and ongoing challenges in achieving a perfect measure.

Way Forward to Forest Conservation: Regeneration, Community Engagement, and Private Sector Involvement

• Awareness Generation: There is a need for generation of awareness among implementers regarding ground-level challenges and advocates for a broader perspective beyond mere tree plantation.
  • There is a need for a nuanced understanding of measurement issues and the role of social science in assessing the effectiveness of such programmes.
• Regeneration vs. Plantations: A regeneration approach, emphasizing the protection of natural areas from disturbances to allow for natural forest growth.
  • Over a span of 10-15 years, natural forests can regenerate, supporting biodiversity and providing benefits to local communities.
• Leveraging Private Sector: Despite complexity, there is a need for leveraging private sector resources through market-based incentives.

Conclusion

Concerns regarding monoculture, biodiversity loss, and clashes with existing laws underscore the need for careful execution of Green Credit Programme while ensuring regulatory alignment.