Centre tweaks green credit program norms to focus on restoration of ecosystem.

Syllabus: GS-III; Subject: Environment, Ecology and Disaster Management Topic: Forest Conservation, Issue: Green Credit Programme.

Context: The Central government made changes to the Green Credit program.


  • Financial gain vs. ecosystem restoration.
  • Non-tradable currently.
  • Ministry prioritizes ecosystem restoration.
  • Each tree earns one ‘green credit’.
  • Credits used for legal compliance or CSR.
Green Credit Initiatives:

·       Launched by Indian PM at COP 28 in 2023.

·       Part of the government’s Lifestyle for Environment (LiFE) movement introduced at COP26 in 2021.

·       Green Credit Rules, 2023: Notified under the Environment Protection Act 1986.


·       Introduce a market-based approach to incentivize 8 environmental activities.

·       Aim to earn incentives in the form of ‘Green Credits’.

·       Individuals or organizations can undertake various environmental activities to earn credits.

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