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Green Credit Programme: New Rules to Restore Degraded Forests and Issue Credits – Ministry of Environment Update

The Ministry of Environment has updated the Green Credit Programme, introducing rules that award credits after five years of forest restoration achieving 40% canopy density. Administered by ICFRE, the scheme aims to revive degraded forest lands, boost carbon sequestration, and support local livelihoods, linking directly to Mission LiFE and India's climate goals.
The Green Credit Programme has been strengthened with fresh rules to restore degraded forest lands and promote sustainable livelihoods. The Ministry of Environment, Forest and Climate Change (MoEFCC) answered a Lok Sabha query, outlining the programme’s objectives, implementation framework, and eligibility criteria. Key Developments Green Credit Rules, 2023 were notified on 12 Oct 2023 under the Environment (Protection) Act, 1986 . Specific guidelines for tree plantation and eco‑restoration were released on 22 Feb 2024 and revised on 29 Aug 2025 . The programme is administered by the ICFRE, Dehradun . Eligibility requires a minimum of five years of restoration work and achieving at least 40% canopy density before credits can be claimed. A dedicated portal ( moefccgcp.in ) has been launched for applications, monitoring, and reporting. Important Facts The programme targets degraded forest lands identified and registered by State Forest Departments after ground verification. Restoration activities focus on increasing green cover, enhancing carbon sequestration, and improving ecosystem services such as timber, non‑timber forest produce, fodder, and water for local communities. A designated agency conducts verification of each claim. The Administrator (ICFRE) issues credits only after the agency confirms that the five‑year establishment period is complete and the required <span class="key-term" data-definition="canopy density — the proportion of ground area covered by the vertical projection of tree crowns; a 40% threshold indicates a moderately dense forest, important for biodiversity and carbon storage; GS3:
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Quick Reference

Key Insight

Green Credit Programme now rewards forest restoration with tradable credits, boosting climate action.

Key Facts

  1. Green Credit Rules, 2023 को 12 Oct 2023 को Environment (Protection) Act, 1986 के तहत अधिसूचित किया गया।
  2. वृक्षारोपण दिशानिर्देश पहली बार 22 Feb 2024 को जारी किए गए और 29 Aug 2025 को संशोधित किए गए।
  3. कार्यक्रम ICFRE, Dehradun द्वारा प्रशासित है – MoEFCC के तहत एक अनुसंधान संस्थान।
  4. पात्रता: कम से कम पाँच वर्षों का पुनर्स्थापन कार्य और न्यूनतम 40% कैनोपी घनत्व।
  5. एक समर्पित पोर्टल (moefccgcp.in) आवेदन, निगरानी और क्रेडिट जारी करने को संभालता है।
  6. क्रेडिट प्रदान करने से पहले एक designated agency को पुनर्स्थापन की पुष्टि करनी होती है।

Background

The Green Credit Programme translates the Environment (Protection) Act into a market tool that funds forest recovery. It aligns with India's climate pledges, supports rural livelihoods, and shows how research bodies and state agencies cooperate under the Constitution’s directive principles of state policy.

UPSC Syllabus

  • Essay — Environment and Sustainability
  • Prelims_GS — Environmental Issues and Climate Change
  • Prelims_GS — Constitution and Political System
  • Prelims_GS — Ecology and Biodiversity
  • GS2 — Parliament and State Legislatures - structure, functioning, powers and privileges

Mains Angle

GS3 – Discuss how market‑based mechanisms like the Green Credit Programme can strengthen forest governance and meet climate goals. Possible question: Evaluate the role of the Green Credit Programme in India's sustainable development strategy.

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Overview

Full Article

The Green Credit Programme has been strengthened with fresh rules to restore degraded forest lands and promote sustainable livelihoods. The Ministry of Environment, Forest and Climate Change (MoEFCC) answered a Lok Sabha query, outlining the programme’s objectives, implementation framework, and eligibility criteria.

Key Developments

  • Green Credit Rules, 2023 were notified on 12 Oct 2023 under the Environment (Protection) Act, 1986.
  • Specific guidelines for tree plantation and eco‑restoration were released on 22 Feb 2024 and revised on 29 Aug 2025.
  • The programme is administered by the ICFRE, Dehradun.
  • Eligibility requires a minimum of five years of restoration work and achieving at least 40% canopy density before credits can be claimed.
  • A dedicated portal (moefccgcp.in) has been launched for applications, monitoring, and reporting.

Important Facts

The programme targets degraded forest lands identified and registered by State Forest Departments after ground verification. Restoration activities focus on increasing green cover, enhancing carbon sequestration, and improving ecosystem services such as timber, non‑timber forest produce, fodder, and water for local communities.

A designated agency conducts verification of each claim. The Administrator (ICFRE) issues credits only after the agency confirms that the five‑year establishment period is complete and the required

Read Original on pib

Green Credit Programme now rewards forest restoration with tradable credits, boosting climate action.

Key Facts

  1. Green Credit Rules, 2023 को 12 Oct 2023 को Environment (Protection) Act, 1986 के तहत अधिसूचित किया गया।
  2. वृक्षारोपण दिशानिर्देश पहली बार 22 Feb 2024 को जारी किए गए और 29 Aug 2025 को संशोधित किए गए।
  3. कार्यक्रम ICFRE, Dehradun द्वारा प्रशासित है – MoEFCC के तहत एक अनुसंधान संस्थान।
  4. पात्रता: कम से कम पाँच वर्षों का पुनर्स्थापन कार्य और न्यूनतम 40% कैनोपी घनत्व।
  5. एक समर्पित पोर्टल (moefccgcp.in) आवेदन, निगरानी और क्रेडिट जारी करने को संभालता है।
  6. क्रेडिट प्रदान करने से पहले एक designated agency को पुनर्स्थापन की पुष्टि करनी होती है।

Background & Context

The Green Credit Programme translates the Environment (Protection) Act into a market tool that funds forest recovery. It aligns with India's climate pledges, supports rural livelihoods, and shows how research bodies and state agencies cooperate under the Constitution’s directive principles of state policy.

UPSC Syllabus Connections

Essay•Environment and SustainabilityPrelims_GS•Environmental Issues and Climate ChangePrelims_GS•Constitution and Political SystemPrelims_GS•Ecology and BiodiversityGS2•Parliament and State Legislatures - structure, functioning, powers and privileges

Mains Answer Angle

GS3 – Discuss how market‑based mechanisms like the Green Credit Programme can strengthen forest governance and meet climate goals. Possible question: Evaluate the role of the Green Credit Programme in India's sustainable development strategy.

Analysis

Related PYQs

No related PYQs linked to this article yet.

Practice Questions

GS3
Easy
Prelims MCQ

Environmental legislation

1 marks
3 keywords
GS3
Medium
Mains Short Answer

Green Credit Programme – eligibility

5 marks
5 keywords
GS3
Hard
Mains Essay

Green financing and forest policy

20 marks
5 keywords
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