Now, Green Credits For Compensatory Afforestation, Real Estate News, ET RealEstate

March 21, 2024

NAGPUR: Project proponents, who want to meet compliance of compensatory afforestation in case of forest land diversion for various projects, can avail of green credit through tree plantation, instead of land for land as was the case so far.

The Centre has finally notified the methodology for Green Credit Rules, 2023. As per the methodology, green credit shall be calculated at the rate of one green credit per tree growth through tree plantation on degraded land, open forests, scrub forests and catchment areas, subject to a minimum density of 1,100 trees per hectare, based on local silvi-climatic and soil conditions.

Such credits may be exchanged to meet compliance of compensatory afforestation in case of diversion of forest land for non-forestry purposes under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980.

Forest department of every state and Union territory shall make available lands, which shall be used for tree plantation to promote activities for increasing the green cover across the country for generation of green credit. Such lands must be free from all encumbrances and should be five hectares or above.

The notification states that any person or entity desirous of undertaking tree plantation for the generation of green credit may apply to Indian Council for Forestry Research & Education, Dehradun, which has been appointed the administrator.

The administrator will identify land and assign the same to the applicant. The applicant then needs to submit a proposal for undertaking tree plantation for generation of green credit. After receiving the proposal, the administrator will issue a demand note to the applicant regarding the cost of tree plantation and administrative expenses to be paid. Once paid, the administrator will direct the forest department to carry out tree plantation in line with the working plan.

On completion of the tree plantation, forest department will submit report to the administrator, who will issue a certificate to the applicant.

After evaluation and verification, the administrator may issue green credits to the applicant, based on the total number of trees planted in the assigned land parcel.

Such green credits can be used under environmental, social, and governance leadership indicators or corporate social responsibility (CSR).

  • Published On Mar 21, 2024 at 05:00 PM IST

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