The Union environment ministry has notified draft rules for implementation of a Green Credit Programme (GCP). The programme aims to create a market-based mechanism for incentivising “voluntary environmental actions” by individuals, urban local bodies, communities and the private sector. The draft is now in the public domain for suggestions and objections, for a period of 60 days, after which it will be finalised.
Under this programme, certain activities will earn green credits, which can also be traded – that is, bought and sold – on a trading platform.
So, how will this Green Credit Programme actually work? What activities qualify for green credits? And will the institutionalisation of green credits result in forests being viewed as fungible assets - just like any money or any commercial paper, when they actually are not?