• UGI USER
  • Oct 03, 2023
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Centre plans ‘market’ scheme to promote sustainable living.

Relevance

  • GS Paper 3 Conservation, Environmental Pollution, and Degradation, Environmental Impact Assessment.
  • Tags: #gspaper3 #upsc #greencreditsystem #competitive-exams.

The Environment Ministry has issued a draft notification detailing a proposed ‘Green Credit Scheme’ that will incentivize a host of activities including afforestation programmes, water conservation, waste management and remedying air pollution by allowing individuals and organisations to generate ‘green credits’.

Green Credit Programme

  • The Green Credit Program will leverage a competitive market-based approach for Green Credits thereby incentivizing voluntary environmental actions of various stakeholders.
  • It will also encourage private sector industries and companies as well as other entities to meet their existing obligations, stemming from other legal frameworks, by taking actions which are able to converge with activities relevant for generating or buying Green Credits,”.
  • Unlike carbon markets, where only greenhouse gas emissions are traded, the Green Credit Scheme is “trickier” as it involves accounting for a wide range of actions.

The notification for instance lists out eight sectors, or activities, that can qualify for generating credits. They include

  • Tree plantation: based green credit to promote activities for increasing green cover through tree plantation and related activities
  • Water: based green credit to promote water conservation, water harvesting and water use efficiency/savings, including treatment and reuse of wastewater;.
  • Sustainable agriculture: based green credit to promote natural and regenerative agricultural practices and land restoration to improve productivity, soil health and nutritional value of food produced.
  • Waste management: based green credit to promote sustainable and improved practices.

Carbon Markets

  • Carbon markets are a tool for putting a price on carbon emissions.
  • It allows the trade of carbon credits with the overall objective of bringing down emissions.
  • Article 6 of the Paris Agreement provides for the use of international carbon markets by countries to fulfil their NDCs (Nationally Determined Contributions).
  • NDCs are climate commitments by countries setting targets to achieve net-zero emissions.
  • A carbon credit is a kind of tradable permit that equals one tonne of carbon dioxide removed, reduced, or sequestered from the atmosphere.

Source: The Hindu