In her maiden Budget in ‘Amrit Kaal,’ a vision for India’s progress over the next 25 years, Finance Minister Nirmala Sitharaman put in motion the process of executing the prime minister’s agenda of sustainable development and energy transition. The budget outlines several green growth policies, with one of the most notable announcements being the adoption of guidelines for the Green Credit Program, which will be declared under the Environmental Protection Act. As per reports, green credit program shows commitment to green growth via climate change mitigation and ecosystem sustainability.
The Green Credit Program will be created to assist in the mitigation of climate change, the development of adaptive ability, and the general improvement of the environment through enhancing energy and resource usage efficiency and promoting environmental conservation, among other things. The goal is to promote behavioral change.
The initiative is consistent with the visions of Lifestyle for Environment (LiFE), panchamrit, and net-zero carbon emissions by 2070. The Green Credit Program will also provide economic incentives and motivate the deployment of additional resources for the adoption of ecologically sustainable and responsive technology and processes by businesses, people, and local governments.
What is the Approach?
The Green Credit Program will require a framework that is coordinated with the local and international carbon markets to have a major impact and a consistent route toward a net-zero future. In addition to high-quality projects in important areas such as forest ecosystem services, water, waste management, and transportation, an appropriate green credit mechanism should incorporate legislative frameworks or laws.
The market infrastructure will also be improved to ease the exchange or transfer of green credits. A national “mega-registry” for all carbon instruments may be established, which could be connected to international registers.
Forest and Ecosystem Credits, Water Quality and Access Credits, Waste Management Credits, Air Quality Credits, Energy Efficiency Credits, and Renewable Energy Generation Credits are all possible under the Green Credit Program. Green Credit Program shows commitment to green growth via climate change mitigation and ecosystem Sustainability.
There are also additional credits like domestic (Indian) emission trading system carbon credits under the EC Act 2022, international voluntary carbon credits, Paris Agreement Article 6 carbon credits, and EPR Regulations plastic credits.
The Green Credit Program’s regulating body might be India’s Ministry of Environment, Forests, and Climate Change (MOEFCC) and its sub-committees/bodies. After stakeholder input, MOEFCC will develop an overarching policy framework, draught rules under FCA and EPA, and establish institutions to carry out the plan.
With regulations and initiatives such as the Green Credit Program, Mangrove Initiatives, GOBARdhan Schemes for waste management and recycling, Micro Fertilizers Manufacturing and Distribution Network, and customs duty exemptions for green mobility, the future looks promising and sustainable with capital inflow and government support.
Source: Energy Economictimes