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Core Purpose

The Central Government notifies a new methodology for calculating Green Credit in respect of tree plantation activity under sub-rule (1) of rule 5 of the Green Credit Rules, 2023, superseding notification S.O. 884(E), dated 22nd February, 2024.

Detailed Summary

The Ministry of Environment, Forest and Climate Change, via G.S.R. 592(E) dated 29th August, 2025, notifies a revised methodology for calculating Green Credit for tree plantation activities, superseding its previous notification S.O. 884(E) dated 22nd February, 2024, while preserving actions taken before the supersession. This notification is issued under sub-rule (1) of rule 5 of the Green Credit Rules, 2023, which were originally enacted under sections 3, 6, and 25 of the Environment (Protection) Act, 1986 (29 of 1986) through notification S.O. 4458(E) dated 12th October, 2023. Under the new methodology, applicants are eligible to submit a claim for Green Credit after completing a minimum of five years of restoration activities in degraded forest land parcels and achieving a minimum canopy density of forty percent (40%), subject to paying a verification fee determined by the Administrator in consultation with the Central Government. Green Credit calculation will be based on vegetation status, changes in canopy density, and the number of surviving trees, with one Green Credit awarded for each new tree over five years old. The Administrator will issue Green Credit following evaluation and verification by designated agencies. Green Credit generated under the Green Credit Programme for compensatory afforestation or tree plantation is non-tradable and non-transferable, except between a holding company and its subsidiary companies. Implementation modalities for land parcels with payments deposited under S.O. 884(E) dated 22nd February, 2024, will continue to be governed by that notification, but Green Credit calculation and usage for these cases will adhere to the criteria of this current notification. Generated Green Credit may be exchanged once for purposes such as meeting compensatory afforestation compliance under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 (69 of 1980), fulfilling corporate social responsibility requirements based on forest restoration costs, or meeting tree plantation obligations for project approvals. Once exchanged, the Green Credit is extinguished to the extent used. Additionally, Green Credit generated can be used for reporting under environmental, social, and governance leadership indicators. Further implementation modalities will be specified by the Ministry of Environment, Forest and Climate Change.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-29082025-265796 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 548] NEW DELHI, FRIDAY, AUGUST 29, 2025/BHADRA 7, 1947 MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE NOTIFICATION New Delhi, the 29th August, 2025 G.S.R. 592(E). — Whereas, the Central Government enacted the Green Credit Rules, 2023 under section 3, 6 and 25 of the Environment (Protection) Act, 1986 (29 of 1986) vide notification number S.O. 4458(E), dated the 12th October, 2023 and was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub Section (ii); And whereas, in pursuance of sub-rule (1) of rule 5 of the Green Credit Rules, 2023, the methodology for calculation of Green Credit in respect of tree plantation was notified vide notification number S.O. 884(E), dated the 22nd February, 2024 and was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub Section (ii), dated the 22nd February, 2024; And whereas, sub-rule (1) of rule 5 of the said rules provides that the Central Government shall, on the recommendation of the Administrator, notify the methodology for calculating the Green Credit in respect of any activity taken under those rules; Now therefore, in exercise of the powers conferred by sub-rule (1) of rule 5 of the Green Credit Rules, 2023 and in supersession of the Ministry of Environment, Forest and Climate Change notification number S.O. 884(E), dated the 22nd February, 2024, except as respects things done or omitted to be done before such supersession, the Central Government, on the recommendation of the Administrator, hereby notifies the following methodology for calculating the Green Credit in respect of tree plantation activity, namely:- 1. On completion of minimum five years of restoration activities in the degraded forest land parcel(s), and after achieving a minimum canopy density of forty per cent (40% canopy density), the applicant shall be eligible to submit a claim report in the format specified by the Administrator for award of Green Credit and applicant shall be liable to pay the verification fee as specified by the Administrator in consultation with the Central Government. 2. The Green Credit shall be calculated based on the vegetation status including the change in the canopy density and the number of surviving trees. 3. The minimum canopy density of forty per cent shall have to be achieved in the degraded forest land parcel for issuance of Green Credit and one Green Credit shall be awarded for each new tree of the age more than five years. 4. On receipt of the claim report, the Administrator, based on the evaluation and verification of the forest restoration activity through designated agencies, may generate and issue Green Credit to the applicant, as may be applicable, based on the criteria laid down in paragraphs 1 to 3. 5. The Green Credit generated for compensatory afforestation or tree plantation under the Green Credit programme activity shall be non-tradable and non-transferable except for the transfer between the holding company and its subsidiary companies. 6. The implementation modalities for land parcels, where payment against the demand raised by the Administrator was deposited by the applicant and recorded in the Green Credit portal (https://www.moefcc-gcp.in/) in accordance with the notification number S.O. 884(E) dated the 22nd February, 2024, shall continue to be governed by that notification and the calculation of Green Credit and its usage shall be based on the criteria laid down in this notification. 7. The Green Credit generated under the Green Credit Programme may be exchanged once, for any of the following purposes, namely: - a. to meet the compliance of the compensatory afforestation in cases related to diversion of forest land for non- forestry purposes as laid down under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 (69 of 1980) and the rules and guidelines framed thereunder; b. to meet the requirement under the corporate social responsibility, as per the provisions of any law for the time being in force, based on cost incurred towards forest restoration activities; с. to meet the requirement of plantation of trees to fulfil the obligations in compliance of the approval of the project/activity being undertaken by the applicant person or entity as per the provisions of any law for the time being in force. 8. Once the Green Credit is exchanged for any of the purpose mentioned above, it shall be deemed to have been extinguished to the extent such Green Credit has been used and to that extent it cannot be used again. 9. The Green Credit generated in lieu of tree plantation under the said Rules may be used for reporting under environmental, social and governance leadership indicator as per the provisions of any law for the time being in force. 10. The implementation modalities under the Green Credit Programme shall be as specified by the Ministry of Environment, Forest and Climate Change from time to time. [F. No. HSM-12/135/2025-HSM] NAMEETA PRASAD, Jt. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. Digitally signed by SARVESH KUMAR SRIVASTAVA SRIVASTAVA Date: 2025.08.29 22:59:06

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