ESG Reporting Frame Work

Green Credit Programme: What It Is & Why It’s Important

The Green Credit Programme made headlines when Prime Minister Shri Narendra Modi announced it during the annual climate change conference COP28 held in Dubai, United Arab Emirates last year. Well, what is it? How does it differ from existing programs like the Carbon Credit Programme? What are the benefits involved? Will it promote sustainability and help us achieve Net-Zero by 2070?. We will be answering all the questions along with providing insights into the Green Credit Programme.

What is the Green Credit Programme?

Imagine someone asking you to plant a tree in your neighbourhood every weekend without any incentives. Would you be motivated to do it consistently? No, right. But whatif they tell you that for every tree planted, you would receive a monetary reward? You would agree to it right away, won’t you? Similarly, the government understood that they could motivate individuals and organizations to engage in environmentally beneficial activities by offering monetary rewards, known as Green Credits, for their efforts.

The Green Credit Programme incentivizes any effort that benefits the environment and creates a positive impact on the ecosystem. It is designed to mobilize a billion citizens towards adopting sustainable practices. The Ministry of Environment, Forest and Climate Change revealed the draft rules for the Green Credit Programme in June2023 and ran the program for 60 days on a trial basis.

How is the Green Credit Programme different from the Carbon Credits Programme?

When we heard about Green Credits we all thought it sounded similar to Carbon Credits right? While both Green Credits and Carbon Credits aim to incentivize environmental sustainability actions, they differ in their focus, eligibility criteria, and trading mechanisms.


  • Green Credits incentivize a wide range of environment-positive activities beyond carbon emissions reduction, including tree plantation, water conservation, and sustainable agriculture.
  • Carbon Credits primarily focus on reducing greenhouse gas emissions, particularly carbon dioxide (CO2), through various methods such as renewable energy projects and carbon capture initiatives.


  •  Green Credits are open to various sections of society, including individuals, corporations, and organizations engaged in eco friendly actions.
  •  Carbon Credits are typically earned by organisations that reduce emissions below a predetermined baseline or invest in projects leading to emissions reductions.


  • Green Credits offer monetary rewards for engaging in environmentally beneficial activities.
  • Carbon Credits generate revenue through trading on international carbon markets, where companies buy and sell credits to meet emission reduction targets or generate revenue.

Independence and Trading Platform:

  • Green Credits operate independently of carbon credits, focusing on a wider range of environmental actions beyond emissions reduction.
  • Carbon Credits are specifically tied to emissions reduction efforts and traded on international markets, whereas Green Credits may be traded on a proposed domestic platform.

Which Activities Are Considered Under the Green Credit Programme?

There are a certain number of activities that are covered under the Green Credit Programme that can help you earn these credits and convert them into revenue. These are:

  • Tree Plantation: This involves planting trees to create more green spaces, which helps combat deforestation and improves the environment.
  • Water Management: It includes strategies to use water more wisely and conserve it, ensuring that water resources are protected and available for future generations.
  • Sustainable Agriculture: This promotes farming practices that are safe for the environment, such as using natural fertilizers and reducing chemical use, to ensure food production is sustainable and doesn't harm the fertility of the soil.
  • Waste Management: This  focuses on managing waste in a way that reduces pollution and environmental damage, such as the conversion of organic waste into renewable sources of energy.
  • Air Pollution Reduction: Focuses on reducing pollution in the air, like using cleaner energy sources and controlling emissions from factories and vehicles, to improve air quality and public health.
  • Mangrove Conservation and Restoration: This involves protecting and restoring mangrove forests, which are vital ecosystems that provide habitat for many species and protect coastlines from erosion and storms.
  • Eco-mark Labeling: This involves getting a special certification, called the eco-mark, for products that meet very high environmental sustainability standards. It's like a stamp of approval that shows the product is eco friendly and doesn't harm the environment.
  • Sustainable Building and Infrastructure: This means constructing buildings and other structures in a way that's good for the environment. It includes using ecofriendly materials, designing buildings to use less energy and water, and making sure they have minimal impact on nature around them.

What are the challenges involved with the Green Credit Programme:

“With great powers comes great responsibilities”. This applies to the Green Credit Programme as well. Although it has certain advantages it comes with its own set of challenges.

Verification and Validation Complexity: The process of verifying and validating environmentally positive actions may be complex and time-consuming. This can be a challenge for participants and regulatory bodies to ensure the accuracy and reliability of the data submitted.

Risk of Greenwashing: There is a risk that some participants may engage in greenwashing, where they falsely claim to perform environmentally friendly activities to earn Green Credits without actually contributing to environmental sustainability.

Cost and Resource Implications: Participating in the Green Credit Programme may require initial investments in eco friendly technologies, practices, and infrastructure.

Accounting for Regional Differences: The programme may struggle to account for regional variations in environmental impact, making it challenging to establish uniform credit values across diverse geographical areas.


Tips to get the most out of the Green Credit Programme:

Although we’ve told you almost everything about the programme there are a few more tips that can improve your journey with the Green Credit programme and can help you get the most out of it:

  • Understand Eligibility Criteria: The first step is to familiarise yourself with the eligibility criteria for earning Green Credits. Identify the activities that align within your capabilities and contribute positively to the environment.
  • Focus on High-Impact Activities: Prioritize participating in activities that have a bigger environmental impact, such as tree plantation, sustainable agriculture, and sustainable waste management, generation of renewable energy sources. These activities are more likely to yield higher returns in terms of Green Credits.
  • Diversify Participation: Go through a diverse range of environmentally friendly activities to maximize your earning potential. You can consider collaborating with multiple participants across different sectors to leverage collaborative efforts and achieve greater impact.
  • Stay Informed: Stay updated on the latest developments, regulations, and best practices related to the Green Credit Programme.
  • Optimize Resources: Allocate resources efficiently to maximize the effectiveness of your environmental initiatives. Identify areas where investments can give you the highest returns in terms of both environmental impact and Green Credit earnings.
  • Promote Sustainability: Use your participation in the Green Credit Programme as an opportunity to showcase your commitment to environmental sustainability.


In conclusion, the Green Credit Programme comes forward as a promising initiative to encourage environmental sustainability practices on a large scale. By offering monetary rewards for eco-friendly efforts, it aims to motivate individuals and organizations to actively participate in activities that benefit the environment.

Despite its potential benefits, the Green Credit Programme faces challenges like verification complexities and the risk of greenwashing. However, by following suggested tips such as understanding eligibility criteria, prioritizing impactful activities, and staying informed, participants can mitigate these challenges and make the most out of the programme.