NEW DELHI: Industries, cooperatives and other entities, involved in tree plantation in degraded forest land or in other identified land parcels, will be able earn Green Credit only after completion of minimum five years of restoration activities and after achieving a minimum canopy density of 40% (overhead layer of tree crown covering 40% of the ground area), shows an official notification on methodology for calculating the Green Credit in respect of tree plantation activity. It means only tree count will not earn them credit unless the plantation achieves the certain required density. “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 minimum canopy density of 40% 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,” said the Rules, notified by the Union environment ministry on Friday.The Rules, however, made it clear the Green Credit generated for compensatory afforestation or tree plantation under the Green Credit programme activity will be non-tradable and non-transferable except for the transfer between the holding company and its subsidiary companies.It also specified that the Green Credit generated under the programme may be exchanged only once to meet the compliance of the compensatory afforestation in cases related to diversion of forest land for non-forestry purposes and also to meet the requirement under the corporate social responsibility (CSR) of the companies, based on cost incurred towards forest restoration activities. The earned Green Credit can also be used by them to meet the requirement of plantation of trees to fulfil the obligations in compliance of the approval of the project/activity being undertaken by the applicant persons or entities.The notification said that once the Green Credit is exchanged for any of these purposes, it will be deemed to have been extinguished to the extent such credit has been used and to that extent it cannot be used again. The environment ministry had launched the Green Credit Programme in Oct 2023 in order to encourage the private sector and other entities to voluntarily take up tree plantation and other environment-friendly practices. The programme is an innovative market-based mechanism designed to incentivize voluntary environment positive actions.
