COP28: Why the Green Credits initiative launched by PM Narendra Modi is pro-planet

Emphasising the transformative potential of the Green Credits initiative, Prime Minister Narendra Modi stated, “It is a non-commercial effort to create a carbon sink and go beyond the commercial nature of carbon credits.” (Image: AP)

In a pivotal moment at the ongoing COP28, Prime Minister Narendra Modi unveiled the Green Credits initiative, a programme aimed at incentivising environmental action and promoting sustainable development.

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PM Modi, while emphasising the transformative potential of the initiative, stated, “It is a non-commercial effort to create a carbon sink and go beyond the commercial nature of carbon credits.” He also underscored its potential to empower non-state players to become active participants in climate action.

But what is the Green Credits initiative?

Championed by India, the Green Credits initiative envisions a market-based approach to rewarding individuals, communities, and organisations for undertaking environmentally positive actions. These actions could include afforestation, water conservation, and sustainable waste management practices, among others.

Participants in the program will earn tradeable Green Credits, which can be used to offset carbon emissions or sold to entities seeking to reduce their environmental footprint. This mechanism aims to create a financial incentive for individuals and organisations to adopt sustainable practices and contribute to environmental conservation. A repository of policies and best practices that incentivise environment-friendly actions has also been launched (https://ggci-world.in/).

The Green Credits system will be a fully digital and tradeable instrument for environmental sustainability. The entire process, from registration to verification and issuance of green credits, will be done online. However, the initiative’s ability to develop a market, attract participants, establish robust methodologies for quantifying and verifying environmental actions, and ensure a transparent and efficient trading system remains to be seen.

How will it help the environment?

The Green Credits initiative has already been launched in India, and the PM has invited countries around the world to join it. In the first phase, it envisions the issuance of Green Credits for plantation on waste/degraded lands and river catchment areas, to rejuvenate and revive natural ecosystems and create voluntary carbon sinks. This could be done by planting trees in areas that were previously not forested, or reforesting areas that were once forested but have been cleared or degraded, or implementing practices that enhance the ability of forests to store carbon, such as selective logging and fire prevention.

The end goal is to contribute to a healthier planet and a more sustainable future for all. In the long run, the initiative could incentivise water conservation by promoting efficient water usage and reducing pressure on freshwater resources, minimising waste generation and landfill disposal via waste reduction, recycling, and composting, boosting biodiversity conservation through sustainable land management practices, or even enhance environmental awareness and education fostering a culture of sustainability.

How is it different from carbon credits?

Carbon credits, with their established international and national trading systems, focus on reducing or offsetting carbon dioxide emissions. Generated from projects that directly curtail emissions, such as renewable energy initiatives or forestry carbon sequestration efforts, carbon credits empower companies and nations to claim environmental responsibility and monetise their actions. This system allows entities that fail to meet emission standards to purchase carbon credits to improve their environmental performance.

Green credits, on the other hand, have a broader scope, encompassing a wider range of environmental actions and extending beyond direct carbon emission reduction. They reward activities such as afforestation, water conservation, waste reduction, and biodiversity conservation. They also support sustainable development initiatives, and promote environmental awareness and education. This versatility allows green credits to benefit individuals and communities directly, fostering a culture of environmental stewardship.