Govt permits planting of trees on degraded land parcels for credits

In a move to incentivise environmental action and bolster forest restoration efforts, the Ministry of Environment, Forest and Climate Change (MoEFCC) has amended the green credit Rules.

The amendment, which was published on February 26, introduces explicit criteria for land eligibility, outlines application procedures, and introduces a standardised methodology for calculating green credits generated through tree plantation activities.

A green credit is a unit of incentive awarded for carrying out actions that have a positive environmental impact. It works like a reward point for activities such as tree planting, water conservation, sustainable agriculture, or pollution reduction.

Green credits can be traded on a market platform, allowing individuals and organisations to monetise their environmentally-friendly actions and providing incentives for others to adopt similar practices.

India is yet to have a domestic carbon/green credit marketplace with the regulations for it under consideration. There are, however, independent agencies running such platforms.

According to the notification, tree plantation for green credits can now only occur on degraded land parcels under state or Union Territory control, encompassing open forests, scrub lands, wastelands, and catchment areas.

The minimum land size for such projects is set at 5 hectares.

However, despite the government’s provision of detailed guidelines, environmental law experts expressed concern that the lack of a clear definition for degraded forests may lead to ecological instability.

“This rule is unscientific and completely ignores the ecological aspects of forests. Referring to open forests, scrub land, and catchment areas as 'degraded' land parcels are vague.

And, incentivising industrial-scale plantations in such areas will irreversibly alter soil quality, replace local biodiversity, and may be disastrous for local ecosystem services,” said Debadityo Sinha, lead for Climate & Ecosystems at Vidhi Centre for Legal Policy.

Degraded land is a piece of land that has lost its ability to support healthy plant growth and ecosystems. This can happen due to cutting down too many trees, overgrazing by animals, harmful farming practices, or extreme weather events.

Another ecologist warned that the alteration will result in the transformation of natural forests into man-made ones, ultimately disrupting the ecological equilibrium of the area.

However, an environment ministry official said the amendment will encourage participation of players in forest restoration efforts.

This will ultimately lead to an increase in India's green cover. “The amendment offers a clear and standardised framework for generating green credits through tree plantation, streamlining the process for participants. Moreover, the programme grants flexibility in utilising green credits,” the official said.

Green credits can be used to fulfil compensatory afforestation requirements for non-forestry land use or contribute to environmental, social, and governance (ESG) and corporate social responsibility (CSR) initiatives. The credits can also be exchanged for meeting compensatory afforestation targets.

“The green credit generated under the said Rules, may be exchanged for meeting compliance of the compensatory afforestation in case of diversion of forest land for non-forestry purposes under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 (69 of 1980), as applicable,” the notification said.

According to the notification, anyone who wants to get green credits will have to apply to the MoEFCC administrator.

The administrator then will identify suitable land and prepare a demand note for the applicant, outlining the costs associated with plantation and administration.

The forest department can then undertake the plantation based on a predetermined management plan. It can ensure completion within two years. Once the plantation is complete, the department issues a certificate to the applicant.

The MoEFCC then evaluates and verifies the activity before awarding green credits. The number of green credits awarded is directly linked to the number of successfully grown trees, with a minimum density of 1,100 trees per hectare required for certification by the department.

Each successfully grown tree earns the applicant one green credit.