Green Credit Rules, 2023

6482 GI/202 3 (1) EXTRAORDINARY PART II —Section 3 —Sub-section ( ii) PUBLISHED BY AUTHORITY No. 4287] NEW DELHI, THURS DAY , OCTOBER 12, 2023/ ASVINA 20, 1945 CG-DL-E-13102023-249377 MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE NOTIFICATION New Delhi, the 12th October, 2023 S.O. 4458 (E). —WHEREAS a Green Credit programme is being launched at national level to leverage a competitive market -based approach for green credit for incentivising environmental actions of various stakeholders; AND WHEREAS the Government of India has introduced ‘ LiFE '-'Lifestyle for Environment’, as a grass -root, mass movement, for protection an d conservation of environment and for other environmental and climate gains, by enhancing environmental actions that propagate a healthy and sustainable way of living based on traditions and values of conservation and moderation, and for sustainable and en vironment -friendly development; AND WHEREAS an innovative market -based mechanism to incentivise environment positive actions will help promote the LiFE movement, which aims at encouraging sustainable lifestyles by driving consumer and community towards beh avioural changes that promote environment friendly actions; AND WHEREAS the Green Credit programme is independent of the carbon credit under the Carbon Credit Trading Scheme, 2023 made under the Energy Conservation Act, 2001 (52 of 2001), an environmental activity generating green credit may have climate co -benefit s, such as reduction or removal of carbon emissions and an activity generating green credit under Green Credit programme may also get carbon credit from the same activity under the said Scheme; AND WHEREAS the draft Green Credit Programme Implementation Ru les, 2023 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub -section (ii), vide notification number S.O. 2779(E), dated the 26th June 2023 inviting objections and suggestions from all persons; AND WHEREAS all the objections and suggestions received have been duly considered by the Central Government; NOW, THEREFORE, in exercise of the powers conferred by section 3, section 6 and section 25 of the Environment (Protection) Act, 1986 (29 of 1986), the Central Government hereby make s the following rules, namely: — 1. Short title and commencement. — (1) These rules may be called the Green Credit Rules, 2023. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Objectives of Green Credit programme. — (1) 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. (2) The green credit will arise from taking measures by a person of any environment activities referred to in sub-rule (2) of rule 4. (3) The green credit programme shall encourage industries, companies and other entities to meet their existing obligations or other obligations under an y 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 obliga tion in compliance of any law for the time being in force shall not be tradable. 3. Definitions. — (1) In these rules, unless the context otherwise requires, — (a) “Administrator” means the Administrator referred to in rule 7; (b) “designated agency” means an entity designated as such under rule 13; (c) “Green Credit” means a singular unit of an incentive provided for a specified activity, delivering a positive impact on the environment; (d) “Registry” means the Green Credit Registry established under rule 1 0. (2) Words and expressions used in these rules and not defined herein but defined in the Environment (Protection) Act, 1986, shall have the same meaning as assigned to them in the Act. 4. Green Credit programme. — (1) Any person or entity may take any mea sure specified under sub -rule (2) for the purposes of protection, preservation, or conservation of the environment. (2) The measures referred to in sub -rule (1) may include the following activities, namely: — (i) tree plantation —to promote activities for increasing the green cover across the country; (ii) water management —to promote water conservation, water harvesting and water use efficiency or water savings, including treatment and reuse of wastewater; (iii) sustainable agriculture —to promote natural and regenerative agricultural practices and land restoration to improve productivity, soil health and nutritional value of food produced; (iv) waste management —to promote circularity, sustainable and improved practices for waste management, including collectio n, segregation, and environmentally sound management; (v) air pollution reduction —to promote measures for reducing air pollution and other pollution abatement activities; (vi) mangrove conservation and restoration —to promote measures for conservation and r estoration of mangroves; (vi) ecomark label development —to encourage manufacturers to obtain ecomark label for their goods and services; (vii) sustainable building and infrastructure —to encourage the construction of sustainable buildings and other infrastr ucture using environment friendly technologies and materials. (3) A person or entity desirous of obtaining green credit shall register the activity with the Administrator for any activity referred to in sub -rule (2) undertaken by him for grant of green cre dit. (4) An application for registration under sub -rule (3) shall be made to the Administrator electronically through a website established by the Central Government for that purpose. (5) On receipt of the application under sub -rule (4), the Administrato r shall cause the activity to be verified by a designated agency. (6) The designated agency shall, after making such verification and inquiry as it may deem necessary, in accordance with the guideline made in this behalf, submit a report to the Administrat or verifying the activities undertaken by the applicant. (7) On receipt of the report under sub -rule (6) verifying the activities undertaken by the applicant, the Administrator shall grant the applicant a certificate of green credit. 5. Methodology of gene rating green credit. —(1) The methodology for calculating the green credit in respect of any activity undertaken shall be such as may be notified by the Central Government on the recommendation of the Administrator. (2) The calculation of green credit in r espect 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. 6. Procedure for generation of green credit .— (1) The methodology for evaluation and verification of the activities undertaken for the purpose of calculation of green credit shall be such as may be determined by the Administrator. (2) The manner of registration of the activities and the details required for such registration shall be determined by the Administrator. (3) 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 activit ies, electronically. 7. Administrator. — (1) The Indian Council of Forestry Research and Education, a Society registered under the Societies Registration Act, 1860 (21 of 1860) vide Registration No.596/1990 -91, dated the 12th March, 1991 and an autonomous b ody as declared by the then Ministry of Environment and Forests, Government of India vide Resolution No.1 -8/89-RT, dated the 22nd June, 1990, shall be the Administrator under these rules . (2) The Administrator shall be responsible for the effective imple mentation of the Green Credit programme, including its management and operation under these rules. (3) The responsibilities of the Administrator shall include the following, namely: — (a) develop guidelines, processes and procedures for the implementation o f 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 (includin g 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 th ird-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 Registr y, 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 f iling of annual returns and progress reports by designated agency, Registry, trading platform and knowledge and data platform; (h) develop guidelines for the market stability mechanism for trading of green credit. (i) regulate matters relating to trading o f green credit certificates and to safeguard interest of sellers and buyers; and take preventive and corrective actions to prevent fraud or mistrust. (4) The Administrator shall seek approval of the Central Government for guidelines and methodologies unde r sub-rule (3). 8. Steering Committee. — (1) A Steering Committee to be constituted by the Central Government shall be responsible for the monitoring of the implementation of the Green Credit programme under these rules. (2) The Steering Committee shall comprise of representatives from the Ministries or Departments, experts from the field of environment, industry associations and other relevant stakeholders as the Central Government may consider appropriate. (3) The Steering Committee shall, from time to time, review the Green Credit programme under these rules and make recommendations to the Central Government in respect of following, namely: — (a) activities and sectors to be included in the Green Credit programme; and (b) any matter referred to it by the Central Government. 9. Technical Committee. — (1) The Central Government, based on the recommendations of the Administrator, may constitute Technical Committees for each activity which shall assist the Administrator in implementation of the Green Credit pr ogramme under these rules. (2) Each Technical Committee shall comprise of members from the Ministries and Departments, organisations and experts having the knowledge and experience in the field related to the activity; (3) Technical Committee shall develo p and make recommendations to the Administrator which will inter alia include — (a) methodology for calculation of one unit of Green Credit, on the basis of equivalence of resource requirement, parity of scale, scope, size and other relevant parameters requ ired to achieve the desired environmental outcome; (b) mechanism for registration, verification, evaluation, measurement and reporting process in respect of each activity. (4) The Technical Committee shall advise on any other technical matter referred to it by the Administrator. 10. Green Credit Registry. — (1) The Administrator or designated agency shall establish and maintain a Green Credit Registry for the registration and issuance of each Green Credit. (2) The Registry shall be an electronic database, which, inter alia, shall contain common data elements relevant to the registration and issuance of green credit. (3) The Registry shall discharge the following functions, namely: — (a) registration of activities and issuance of green credit; (b) ensure a ccurate accounting of the issuance of green credit; (c) maintain secure database with all required and essential security protocols; (d) any other function assigned to it by the Administrator. 11. Trading platform. — (1) The Administrator shall establish an d maintain a trading platform with the approval of the Central Government. (2) The trading platform 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. 12. Knowledge and data platform. — (1) The Administrator shall develop and maintain a knowledge and data platform, with approval of the Central Government, for providing transparency on various activities being undertaken and for reporting sect oral progress under these rules. (2) The knowledge and data platform may collate key data points generated from the Registry and other information, such as sectoral achievements, best practices, information on capacity building, etc. 13. Designated agency. — (1) The Administrator shall designate such entities to act as designated agency in accordance with the guidelines approved by the Central Government. (2) The designated agency shall conduct verification and submit reports to the Administrator in accordan ce with the guidelines as regard to the verification of the activities undertaken by an applicant for issuance of green credit under these rules.; (3) The designated agency shall file annual returns to the Administrator in accordance with the guidelines. 14. Demand generation for green credit. — (1) The participation to the Green Credit programme under these rules shall be based on voluntary participation. (2) The Steering Committee shall recommend measures to generate demand for green credit in the country . 15. Auditors. — (1) 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 app ointed by the Central Government on the recommendation of the Steering Committee. (2) The auditor referred to in sub -rule (1) shall submit its audit report to the Administrator. (3) The Administrator shall submit an action taken report on the audit report to the Central Government within a period of six months from the date of the receipt of the audit report. [F. No.12/24/2023 –HSM(pt2)] NAMEETA PRASAD , Jt. Secy . Uploaded by Dte. of Printing at Government of India Press, Ring R oad, Mayapuri, New Delhi -110064 and Published by the Controller of Publications, Delhi -110054.