Implementation of India’s Green Credit Program - CSR

Introduction:

Green credits are an environmental incentive system designed to encourage sustainable practices by rewarding individuals, organizations, and industries for their environmentally friendly actions. The concept has gained global attention as part of broader efforts to tackle climate change and environmental degradation. In India, a major step forward was the launch of the Green Credit Programme (GCP) by the Ministry of Environment, Forest and Climate Change (MoEFCC). It was announced in 2023 as part of the LiFE (Lifestyle for Environment) movement, which was originally introduced by Prime Minister Narendra Modi during the 26th UN Climate Change Conference (COP26) in Glasgow in 2021.[1]

The GCP aims to promote sustainable lifestyles and environmental conservation through a market-based mechanism that incentivizes eight identified environmental activities. A detailed implementation framework has been released at this stage for afforestation activities. This article provides insights into how the implementation of such afforestation activities is structured under the Programme.

Governance Structure: To ensure smooth implementation, the government has set up a dedicated management framework:

• Ministry of Environment, Forest and Climate Change (MoEFCC)- Government of India- To frame policies and set the overall direction of the program.
• Indian Council of Forestry Research and Education (ICFRE) –To acts as the Administrator, manage day-to-day operations of the program.
• Steering Committee – Representatives from the Ministries or Departments, experts from the field of environment,industry associations and other relevant stakeholders as the Central Government may consider appropriate- To provide strategic direction, review the inclusion of new sectors or activities and approve scientific methodologies for credit generation.
• Technical Committees- Members from the Ministries and Departments, organisations and experts having the knowledge and experience in the field related to the activity- To prepare and review scientific methodologies for each eligible activity under the program.
• Designated Agencies – Administrator shall designate such entities to act as designated agency in accordance with the guidelines approved by the Central Government- Independent, third-party entities to scrutinize and verify proposed green activities meet the  programme criteria.

Start-to-End Process for Earning Green Credits:

Corporates can earn Green Credits by directly funding afforestation activities on degraded forest land through the GCP portal, enabling them to turn environmental responsibility into measurable impact and tradable value.

• Land Identification and Registration: State Forest Departments identify degraded forest land (minimum 5 hectares) suitable for afforestation. These land parcels, along with estimated restoration costs, are uploaded to the Green Credit Program (GCP) portal (www.moefcc-gcp.in), creating a centralized “land bank.”
• Applicant Registration and Selection: Eligible entities, individuals, companies, Public Sector Undertakings, NGOs may register on the GCP portal as Green Credit Applicants (GCAs). After registration, they can browse the available land parcels and select a block for restoration.
• Payment Process: Once a land parcel is selected, a demand note is generated by the ICFRE detailing the project cost. The GCA pays the amount to the ICFRE, funding the plantation and its maintenance.
• Plantation Implementation: Post-payment, the ICFRE instructs the concerned Forest Department to carry out afforestation within a period of 2 years and maintain the site. In addition, the forest department is required to post regular progress updates on the GCP Portal.
• Verification and Credit Issuance: A Designated third-party agency verifies the plantation based on survival rates and compliance with guidelines. On successful verification, the ICFRE issues Green Credit Certificates typically one credit per surviving tree which is recorded in a tradeable registry.

How Can Green Credits Be Used: Once Green Credits are earned, a GCA can then:

• Sell them on the trading platform to generate revenue.
• Use them for compliance with existing obligations, such as Compensatory Afforestation requirements under forest laws.
• Highlight them as part of their Environmental, Social, and Governance (ESG) leadership indicators or Corporate Social Responsibility (CSR) initiatives.

Conclusion:                            

Green credits represent a smart business move. By joining early, companies don’t just contribute to a greener planet they unlock a powerful tool for brand leadership, improved ESG scores, and access to green finance. It’s an opportunity to stand out in the market, build trust with eco-conscious investors, and be seen as a front-runner in sustainability. In today’s landscape, aligning with People, Planet, and Profit is no longer optional it’s a strategic imperative.

To gain a deeper understanding of the concepts of green credits and carbon credits, you can read our article on the topic here: India’s Carbon and Green Credit Mechanisms – Unlocking a Greener Economy

[1] https://www.mygov.in/life/