Environment

Green Credit Programme

GS3 EnvironmentPrelims and Mains

In the news since 16 March 2026 · last on 3 August 2026

Why in news
On 3 August 2026, the Minister of State for Environment told the Lok Sabha how the Green Credit Programme works: who administers it, and the five-year and 40% canopy conditions for claiming credits on degraded forest land.
What it is
The Green Credit Programme is a market-style incentive to reward voluntary actions that help the environment, such as tree planting and land restoration. It is linked to Mission LiFE. It runs under the Green Credit Rules, 2023, made under the Environment (Protection) Act, 1986.
Legal basis
Green Credit Rules were notified on 12 October 2023 under the Environment (Protection) Act, 1986.
Administrator
ICFRE, Dehradun, is the Administrator. It manages and runs the programme and issues credits.
Land selection
The State Forest Department selects and registers degraded forest land parcels after ground verification.
Verification
A designated agency verifies claims and reports to the Administrator.
Modality dates
The tree plantation and eco-restoration modality was notified on 22 February 2024 and revised on 29 August 2025.
Compensatory afforestation link
Forest lands restored under the programme can be exchanged to meet compensatory afforestation requirements.

Don’t confuse with Green Credit vs carbon credit: Green Credits reward voluntary environmental actions such as tree planting. Carbon credits under the Carbon Credit Trading Scheme relate to greenhouse gas emissions reductions.

Environment: Prelims tests bodies, programmes and the law behind them; Mains asks why plans fall short.

Test yourself

Worth revising until Prelims 2028: most news questions come within two years of the event.

Each time it was in the news

  1. 3 August 2026

    On 3 August 2026, the Minister of State for Environment told the Lok Sabha how the Green Credit Programme works: who administers it, and the five-year and 40% canopy conditions for claiming credits on degraded forest land.

  2. 16 March 2026

    On 16 March 2026 the Environment Ministry told the Lok Sabha how the Green Credit Programme restores degraded forest land, with ICFRE as Administrator and 4,391 ha selected across 12 states.