- 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.
Why it matters
- Gives public and private entities a reason to restore degraded forest land.
- Supports carbon sequestration, biodiversity and local livelihoods.
- Brings private and public entities into restoring degraded forest land and raises green cover and carbon sequestration.
- Local communities may gain timber, non-timber forest produce, fodder and water.
Problems
- Five-year wait before credits can be claimed may deter private participants.
- Ground verification of canopy density and land selection need capacity in State Forest Departments.
- Avoiding double counting and ensuring ground verification of land parcels.
- Long five-year wait before credits can be claimed may deter participants.
Way forward
- Strengthen monitoring using the manual and independent verification.
- Protect community forest rights and ensure local benefit when restoring forest land.
- Strengthen independent verification by designated agencies and use of the portal for transparency.
- Involve local communities and ensure indigenous species and survival monitoring.
Put in your answer
Green Credit Rules, 2023: Notified on 12 October 2023 under the Environment (Protection) Act, 1986 for voluntary positive actions.
Canopy norm: A 40% canopy density after five years corresponds to moderately dense forest.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Pairs
Ours, not from a UPSC paper
Consider the following pairs about the Green Credit Programme:
- 1.Green Credit Rules, 2023 — Made under the Environment (Protection) Act, 1986
- 2.Administrator of the programme — Indian Council of Forestry Research and Education, Dehradun
- 3.Claiming credits on degraded forest land — Allowed as soon as planting is completed
How many of the pairs given above are correctly matched?
True or false?
1 of 13
Statements the way Prelims prints them. Say first, then see the fact.
1.The Green Credit Rules, 2023 were notified under the Environment (Protection) Act, 1986.
True. The rules were made under the Environment (Protection) Act, 1986.
2.The Indian Council of Forestry Research and Education is the Administrator of the Green Credit Programme.
True. ICFRE, Dehradun, is the Administrator.
3.Under the forest restoration modality, Green Credits can be claimed as soon as planting is completed.
False. Credits can be claimed only after at least five years of work and 40% canopy density.
4.The minimum canopy density required to claim credits under forest restoration is 40 per cent, corresponding to moderately dense forest.
True. 40% canopy density corresponds to moderately dense forest.
5.Degraded forest land parcels are selected and registered by the applicant company without State involvement.
False. The State Forest Department selects and registers the parcels after ground verification.
6.The Green Credit Programme is linked to the Mission LiFE movement.
True. It promotes the objectives of Mission LiFE.
7.Verification of Green Credit claims is done by the Administrator itself, with no designated agency.
False. A designated agency verifies claims and reports to the Administrator.
8.The Green Credit Rules, 2023 were made under the Environment (Protection) Act, 1986.
True. The rules were notified on 12 October 2023 under the EP Act, 1986.
9.The Forest Survey of India is the Administrator of the Green Credit Programme.
False. The Indian Council of Forestry Research and Education, Dehradun is the Administrator.
10.Degraded forest land parcels under the programme are selected and registered by the Central Government's designated agency.
False. They are selected and registered by the State Forest Department after ground verification.
11.Land parcels already earmarked for compensatory afforestation can be taken up under the programme as long as they are verified.
False. Parcels must not be under existing plantation or earmarked for afforestation under any scheme, including compensatory afforestation, to prevent double counting.
12.Afforestation under the programme on degraded forest land is required to use a mixture of indigenous species based on site suitability.
True. Indigenous species mixtures suited to the site are required.
13.The Green Credit Programme is linked to the LiFE movement, which encourages sustainable lifestyles.
True. The programme promotes the LiFE (Lifestyle for Environment) movement.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.