Green Credit Rules, 2023
The green credit programme shall incentivise environmental positive actions through market-based mechanism and generate green credit, which shall be tradable and made available for trading on a domestic market platform.
The green credit will arise from taking measures by a person of any environment activities referred to in sub-rule (2) of rule 4.
The green credit programme shall encourage industries, companies and other entities to meet their existing obligations or other obligations under any law for the time being in force, and encourage other persons and entities, to undertake voluntary environmental measures referred to in rule 4 by generating or buying green credit: Provided that the green credit generated or procured to fulfil any obligation in compliance of any law for the time being in force shall not be tradable
The measures that can be taken for the purposes of protection, preservation, or conservation of the environment includes :
a. tree plantation
b. water management
c. sustainable agriculture
d. waste managemen
e. air pollution reduction
f. mangrove conservation and restoration
g. ecomark label development
h. sustainable building and infrastructure
Methodology of generating green credit
The calculation of green credit in respect of any activity undertaken shall be based on equivalence of resource requirement, parity of scale, scope, size and other relevant parameters required to achieve the desired environmental outcome
Procedure for generation of green credit
The Administrator shall develop the website for registration of activities, evaluation and verification of activities undertaken and award of green credit in respect of such verified activities, electronically.
The responsibilities of the Administrator shall include the following, namely:—
(a) develop guidelines, processes and procedures for the implementation of the green credit programme under these rules;
(b) develop methodologies, registration process, guidelines and associated measurement, reporting and verification mechanism;
(c) establish methodologies and processes for issuance of green credit (including issuance of digital green credit), and equivalence of green credit generated from each identified activity;
(d) develop guidelines for the establishment and operation of the Green Credit Registry and trading platform; for self-certification or third-party certification for the registration of an activity for issuance of green credits and its inspection and verification by designated agency, for empanelment of auditors and audit by such auditors;
(e) establish or designate the Green Credit Registry, and trading platform service provider in accordance with the approved guidelines;
(f) develop guidelines for the green credit programme portal, the knowledge and data platform, and for the fees from the registered entities;
(g) develop guidelines for filing of annual returns and progress reports by designated agency, Registry, trading platform and knowledge and data platform
The Central Government shall constitute a Steering Committee & Technical Committee to monitor the implementation of the Green Credit programme under these rules.
The Administrator or designated agency shall establish and maintain a Green Credit Registry for the registration and issuance of each Green Credit.
The Administrator shall establish and maintain a trading platform , which shall perform functions regarding the trading of green credit, in accordance with the guidelines made by the Administrator with the approval of the Central Government.
The Administrator shall develop and maintain a knowledge and data platform, with approval of the Central Government, which may collate key data points generated from the Registry and other information, such as sectoral achievements, best practices, information on capacity building, etc
The Administrator shall appoint a designated agency in accordance with the guidelines approved by the Central Government, who shall conduct verification and submit reports to the Administrator in accordance
with the guidelines
The participation to the Green Credit programme under these rules shall be based on voluntary participation
The activities of the Administrator, designated agency, Registry, trading platform and knowledge and data platform shall be audited within a period of one year at the end of every third financial year by independent auditors to be appointed by the Central Government on the recommendation of the Steering Committee.