Draft Green Credit Programme Implementation Rules, 2023

4039 GI/202 3 (1) रजजस्ट्री सं. डी.एल.- 33004/99 REGD. No . D. L. -33004/99 EXTRAORDINARY PART II —Section 3 —Sub-section ( ii) PUBLISHED BY AUTHORITY No. 2659] NEW DELHI, TUES DAY , JUNE 27, 2023/ASHADHA 6, 194 5 CG-DL-E-27062023-246825 MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CH ANGE NOTIFICATION New Delhi, the 26th June , 2023 S.O. 2779(E). —Whereas, Government of India introduced ‘LiFE’ – ‘Lifestyle for Environment’, as a grass - root, mass movement for combating climate change, enhancing environment actions to propagate a healthy an d sustainable way of living based on traditions and values of conservation and moderation, and for sustainable and environment -friendly development. And whereas, an innovative market -based mechanism is required to promote the LiFE movement which aims at encouraging sustainable lifestyles by driving consumer/community towards behavioural changes to incentivize environment friendly practices. And whereas, to enable this, a Green Credit Programme is proposed to be l aunched at national level to leverage a competitive market -based approach for Green Credits thereby incentivising voluntary environmental actions of various stakeholders. Apart from incentivizing individual/community behavior, the Green Credit Programme wi ll encourage private sector industries and companies as well as other entities to meet their existing obligations, stemming from other legal frameworks, by taking actions which are able to converge with activities relevant for generating or buying Green Cr edits. And whereas, Green Credits will arise from a range of sectors and entities, ranging from small -scale ones – such as, individuals, Farmer Producer Organisations, cooperatives, forestry enterprises and sustainable agriculture enterprises; to those bei ng developed at the level of Urban and Rural Local Bodies, private sectors, industries and organisations. Green Credits will be tradable outcomes and will act as incentives. In the beginning, Green Credits will be made available to individual and entities, engaged in selected activities and who undertake environmental interventions. These Green Credits will be made available for trading on a domestic market platform. And whereas, an environmental activity generating Green Credits may have climate co -benefit s such as reduction or removal of carbon emissions. An activity generating Green Credits under Green Credit Programme may also get Carbon Credits from the same activity under carbon market. Now, therefore, in exercise of power conferred by sub -section 2(ii i) of section 3 of the Environment (Protection) Act, 1986 (29 of 1986), the Central Government has decided to institute a domestic voluntary market mechanism -- the Green Credit Programme. The Central Government has now proposed a notification for ‘draft Green Credit Programme Implementation Rules 2023’ for the information of the public likely to be affected thereby and notice is hereby given that the said notification will be taken into consideration on or after the expiry of a period of sixty (60) days f rom the date of publication of the draft in the official Gazette; The objections or suggestions, which may be received from any person with respect to the said Notification within the period specified above, will be taken into consideration by the Central Government; Objections or suggestions, if any, may be addressed to the Joint Secretary, Ministry of Environment, Forest and Climate Change, Indira Paryavaran Bhawan, Jor Bagh road, New Delhi - 110003, and may be sent to e -mail id: sohsmd [email protected] 1. Shor t Title and Commencement – (1) These rules may be called the Green Credit Programme Implementation Rules, 2023. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Objectives of the Green Credit Programme – (1) The mai n objectives of the Green Credit Programme (herein after referred as ‘Programme’) are as follows: - a. Create a market based mechanism for providing incentives in the form of Green Credits to individuals, Farmer Producer Organisations, cooperatives, forestry enterprises, sustainable agriculture enterprises, Urban and Rural Local Bodies, private sectors, industries and organisations for environment positive actions; b. Create mass movement around environment positive actions and realise the vision of "Mission LiFE " through pro -planet -people and entities. 3. Definitions – (1) In this framework, unless the context otherwise requires, the following definitions shall apply - a. ‘Accredited Green Credit Verifier’ means an entity accredited and authorized by the Green Credit Programme Administrator to carry out verification activities in respect of the Programme; b. ‘Act’ means the Environment (Protection) Act, 1986 (29 of 1986), as amended from time to time; c. ‘Green Credit’ means a singular unit of an incentive provided for a spe cified activity, delivering a positive impact on the environment; d. ‘Registered Entity’ means any entity, registered for generation of Green Credits; e. ‘Registry’ means an electronic database system maintained by Green Credit Programme Administrator or its accredited agency to record issuance and exchange of Green Credits; f. ‘Third -party certifiers’ means an entity that certifies an activity for its registration; g. ‘Verification’ means an independent evaluation of the green credit activity by the accredited Green Cr edits Verifier for acquiring Green Credits; h. ‘Empaneled Auditors’ means an entity empaneled by the Central Government for auditing the entire system of the Programme. (2) Words and expressions used in this rules and not defined herein but defined in the Envi ronment (Protection) Act, 1986 or any other rules or regulations issued under the said Act, shall have the same meaning as assigned to them respectively in the Act, or such other rules or regulations. 4. Implementation Mechanism of the Green Credit Progr amme – (1) A phased and iterative approach for implementation of the Programme will be adopted. In the initial phase, two to three activities from the sectors indicated in clause (2) will be considered for designing and piloting the Programme . More activit ies will be added from the selected sectors in subsequent phases. More sectors can also be added with the approval of the Central Government. (2) Sectors identified for the Programme with respective objectives are as follows: i. Tree Plantation -based Green Cr edit: To promote activities for increasing the green cover across the country through tree plantation and related activities. ii. Water -based Green Credit: To promote water conservation, water harvesting and water use efficiency/savings, including treatment and reuse of wastewater. iii. Sustainable Agriculture based Green Credit: To promote natural and regenerative agricultural practices and land restoration to improve productivity, soil health and nutritional value of food produced. iv. Waste Management based Green Credi t: To promote sustainable and improved practices for waste management, including collection, segregation and treatment. v. Air Pollution Reduction based Green Credit: To promote measures for reducing air pollution and other pollution abatement activities. vi. Man grove Conservation and Restoration based Green Credit: To promote measures for conservation and restoration of mangroves. vii. Ecomark based Green Credit: To encourage manufacturers to obtain Ecomark label for their goods and services. viii. Sustainable building and infrastructure based Green Credit: To encourage the construction of buildings and other infrastructure using sustainable technologies and materials. (3) Methodology of generating Green Credits: i. Thresholds and benchmarks will be developed for each Green C redit activity for generating and issuance of Green Credits. In case of any obligation under any law, the thresholds and benchmarks will be aligned with that obligation. ii. To maintain fungibility across sectors, the environmental outcome, achievable by any G reen Credit activity, will be based on equivalence of resource requirement, parity of scale, scope, size and other relevant parameters, and will be considered for allocation of one unit of Green Credit in respect of each activity. iii. Digital processes will be developed and established for the Programme including self -assessments of eligible Green Credit activities, registration of activities, issuance of Green Credits, monitoring of performance and other relevant processes. 5. Steering Committee and its functi ons – (1) The governance of the Programme for its effective implementation shall vest in the Steering Committee. The Steering Committee will comprise of representatives from the concerned Ministries/Departments, domain experts, industry associations and ot her relevant stakeholders. (2) Steering Committee shall have the following functions : i. Grant approvals in respect of the following: a. procedures, guidelines and processes in respect of implementation of the Programme; b. guidelines for Measurement, Reporting an d Verification; c. other relevant matters in respect of implementation of the Programme. ii. Make recommendations to the Central Government in respect of following: a. activities and sectors to be included in the Programme; b. measures to create demand for the Programm e. c. any matter referred by the Central Government. iii. Review and monitoring of the implementation of Programme; iv. Any other function as may be assigned by the Central Government. 6. Green Credit Programme Administrator and its functions – (1) The Green Credit Pr ogramme Administrator (herein after referred as ‘Administrator’) shall be responsible for implementation of the Programme including its management, monitoring and operation. (2) The Indian Council of Forestry Research and Education shall be the Administra tor of the Programme . (3) The responsibilities of the Administrator shall include the following: i. Develop guidelines, processes and procedures for implementation of the Programme; ii. Constitute Technical or Sectoral committees for each activity to facilitate in developing methodologies and processes for registration of Green Credit activities and issuance of Green Credits; iii. Develop methodologies, standards, registration process and associated Measurement, Reporting and Verification mechanisms; iv. Establish metho dologies and processes for equivalence of Green Credits generated from each identified activity; v. Develop guidelines for establishment and operation of Green Credit Registry and trading platform, for issuance of digital Green Credits for each activi ty, for self -certification of Green Credits, and for accreditation of Green Credit Registry , third -party certifiers, Green Credit Verifiers, for grant of Green Credits, and for auditing of the Green Credit Programme; vi. Accredit the Green Credit Registry, t hird-party certifiers, Green Credit Verifiers and Trading Service Provider in accordance with the approved guidelines; vii. Register the Green Credit Registry, third -party certifiers, Green Credit Verifiers and Trading Service Provider ; viii. Accredit ag ency for establishing Knowledge and Data platform required for the Programme ; ix. Develop guidelines and protocols for the Programme portal as well as knowledge and data platform, and for collection of fees from registered entities ; x. Develop gui delines for filing of annual returns and progress reports of certification agency, third - party certifiers, Green Credit Verifiers and Trading Service Provider ; xi. Issue digital Green Credits as per the approved guidelines; xii. Collect fees from Registered Entity as per the approved guidelines; xiii. Develop guidelines for establishment and operation of trading platform and market stability mechanism (if required) for trading of Green Credits; xiv. Conduct capacity building, media and outreach activities for the stakeholders; xv. Compile the annual returns and progress reports submitted by the certification agency, third -party verifiers, Green Credit Verifiers and Trading Service Provider; xvi. Any other function assigned by the Steering Committee or Central Gover nment. 7. Technical Committee and its functions - (1) The Administrator may constitute technical or sectoral committees for each activity for developing methodologies , standards and processes for registration of Green Credit activities and grant of Green Credits; (2) Each Technical Committee shall comprise of members from concerned Ministries/ Departments as well as organisations and subject matter experts; (3) Technical Committee shall develop and make recommendations to the Administrator which will inte r-alia include: i. Methodologies for allocation of one unit of Green Credit on the basis of environmental action in case of each activity ensuring fungibility and equivalence of Green Credits; ii. Mechanism for Measurement, Reporting and Verification process in r espect of each activity; (4) Technical Committee shall advise on any other technical matter referred by the Administrator. 8. Green Credit Registry and its functions – (1) The Administrator or its accredited agency shall establish and maintain the registry for the Programme. The Green Credit registry will be in the form of a standardized electronic database which contains inter -alia common data elements relevant to the issuance, holding, transfer and acquisition of Green Credits. The structure and data form ats of the Green Credit Registry shall conform to the prescribed technical standards as per the approved guidelines. (2) The Green Credit Registry shall discharge the following functions, in the manner, as may be specified in the relevant guidelines from time to time which will inter -alia include: i. Registration of entity and grant and recording of Green Credits; ii. Ensure accurate accounting of the issuance, holding, transfer and acquisition of green credits by the stakeholders; iii. Maintain secure database with a ll required and essential security protocols; iv. Maintain records of all transactions; v. Indemnify registered entities in case of any loss caused to such entity due to security breach in the database, not attributable to such registered entity; vi. Establish linkag es with other National and International registries; vii. Comply with the directions issued by the Steering Committee; viii. Any other function assigned in the relevant guidelines. 9. Trading Platform – (1) The guidelines for the establishment and operation of the Tr ading Platform shall be issued by the Administrator with the approval of Steering Committee. (2) The trading platform for the exchange of Green Credits shall be established by the Trading Service Provider accredited by the Administrator in accordance with the approved guidelines. (3) The trading service provider shall perform functions regarding the trading of Green Credits, in accordance with the approved guidelines. 10. Knowledge and Data Platform - (1) The knowledge and data platform, will be an online p latform developed for providing transparency on the various types of activities being undertaken and for reporting sectoral progress under the Programme; (2) This platform may collate key data points generated from Green Credit Registry and other informati on such as sectoral achievements, best practices, information on capacity building, etc. 11. Accredited Green Credit Verifiers – (1) The Administrator will accredit the entities to act as Accredited Green Credit Verifiers in accordance with the approved gu idelines; (2) Accredited Green Credit Verifiers shall conduct verification and submit reports to the Administrator for grant of Green Credits in accordance with provisions of the guidelines; (3) Accredited Green Credit Verifiers shall file annual returns t o the Administrator in accordance with the guidelines; 12. Demand Generation for Green Credits -(1) The Green Credit Programme shall be based on voluntary participation of all stakeholders. (2) Steering Committee shall recommend measures to generate volunt ary demand for Green Credits in the country. (3) All entities registered for Accredited Compensatory Afforestation under the guidelines issued by MoEFCC vide No.FC -11/159/2022 -FC dated 24th January, 2023 shall register with the Green Credit Registry under the Programme. The Accredited Compensatory Afforestation will be eligible for consideration as Compensatory Afforestation for diversion of forest land under these guidelines subject to qualification and allocation of Green Credits under the Programme. 13. Empaneled Auditors - (1) The Central Government may empanel auditors for audit of the entire system of the Programme functioning and administration from time to time. [F. No. 12/24/2023 -HSM] NAMEETA PRASAD , Jt. Secy. Uploaded by Dte. of Printing a t Government of India Press, Ring R oad, Mayapuri, New Delhi -110064 and Published by the Controller of Publications, Delhi -110054.