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Green Credit Programme: Legal Concerns and Implementation

Last Updated

1st April, 2025

Date Published

1st April, 2025

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A realistic depiction of the concept of Green Credit, showcasing a sustainable financial system.

Context:

Published on March 30, 2025, this Indian Express article reveals how the Ministry of Environment, Forest and Climate Change (MoEF&CC) launched the Green Credit Programme (GCP) despite legal apprehensions from the Ministry of Law and Justice. The piece, based on Right to Information (RTI) records, explores the program's objectives, the legal disputes surrounding it, and its implications for environmental governance in India as of March 31, 2025.

Key Information in Points:

  • Green Credit Programme (GCP) Launch:
    • Introduced by the MoEF&CC to enhance forest and tree cover and promote “pro-planet actions.”
    • Announced by PM Narendra Modi at COP28 in Dubai, with rules notified on October 13, 2023.
  • Programme Mechanics:
    • Individuals, communities, and private industries earn tradable “green credits” for actions like increasing forest cover, water management, and sustainable agriculture.
    • Credits can be traded domestically to meet obligations like compensatory afforestation for industrial projects.
  • Legal Concerns Raised:
    • Weeks before the COP28 launch, the Law Ministry questioned the GCP’s legal foundation under the Environment Protection Act (EPA), 1986.
    • Specific concerns included whether the EPA supported creating a market-based mechanism like tradable credits.
  • MoEF&CC’s Response:
    • Justified the GCP under its EPA mandate to plan and implement national programs for pollution control and environmental protection.
    • Cited existing market mechanisms like the Extended Producer Responsibility (EPR) framework under waste management rules, where certificates are traded to meet obligations.
  • Law Ministry’s Stance:
    • Argued that even if market mechanisms existed in waste management, the MoEF&CC should have addressed legal scrutiny specific to the GCP’s framework.
    • No detailed response was provided by the Law Ministry to further queries from The Indian Express.
  • Implementation Despite Concerns:
    • MoEF&CC proceeded with the GCP rollout, sidestepping the Law Ministry’s unresolved legal apprehensions.
  • RTI Revelation:
    • Records obtained via RTI by The Indian Express exposed the inter-ministerial disagreement and the decision to move forward regardless.
  • Broader Implications:
    • Raises questions about the balance between environmental innovation and legal oversight in policymaking.
    • Highlights potential gaps in ensuring environmental programs align with statutory frameworks.

Key Terms:

  • Green Credit Programme (GCP): A scheme incentivizing environmental actions through tradable credits.
  • Ministry of Environment, Forest and Climate Change (MoEF&CC): Central ministry responsible for environmental policy and GCP implementation.
  • Environment Protection Act (EPA), 1986: Legislation empowering the government to protect and improve environmental quality.
  • Ministry of Law and Justice: Government body that flagged legal issues with the GCP.
  • Compensatory Afforestation: Planting trees to offset deforestation caused by industrial projects.
  • Extended Producer Responsibility (EPR): Policy requiring producers to manage waste, cited as a precedent for market-based mechanisms.
  • Right to Information (RTI) Act: Law enabling citizens to access government records, used to uncover this story.

Link To The Original Article – https://indianexpress.com/article/india/before-rolling-out-green-credits-moef-sidestepped-law-queries-9915261/