India's Net Zero: Green Credit Programme in Action
India's net zero transition has reached a critical stage with the introduction of the Green Credit Programme (GCP) and the establishment of India's regulated carbon market.
Led by the Ministry of Environment, Forest and Climate Change (MoEFCC) and the Ministry of Power (MoP), these initiatives signify significant progress towards sustainability and addressing environmental challenges. They align with Mission LiFE, which advocates for an environmentally conscious lifestyle.
The GCP enables individuals, companies, and local bodies to earn "green credits" by engaging in sustainable activities like tree plantation, water conservation, and waste management. Concurrently, the domestic regulated carbon market provides a platform for trading carbon credit certificates.
Key considerations
As India embarks on this transformative journey, several factors require attention to ensure the success of the GCP and the carbon market. These considerations include:
Market Structure: Establishing a unified market structure with standardised carbon credit certificates will streamline trading and enhance transparency.
Pricing Mechanism: Aligning pricing with international benchmarks will attract active participation and foster competitiveness.
Sectoral GHG Emission Targets: Prioritising sectors for emission reduction efforts will guide sustainability goals and align with overall objectives.
Derivatives Trading Instruments: Exploring carbon credit derivatives trading instruments can enhance market liquidity and participation.
Interplay between GCP and Compliance Market: Clarifying whether GCP credits can offset emissions in the compliance market and establishing conversion formulas will ensure seamless integration.
The impact
The impact of these initiatives will be significant. Organisations will face mounting pressure to measure and report their greenhouse gas (GHG) emissions, driving transparency and accountability.
Incentivising reductions in air pollution will encourage corporations to decrease emissions from employee commutes and business travel, benefiting air quality and public health. Sustainable agriculture-based green credits will promote organic farming practices and provide additional income for farmers.
Moreover, the Green Credit Programme will spur investments in green projects that generate carbon credits, fostering sustainable development and contributing to emission reductions.
Addressing greenwashing concerns
Addressing concerns regarding greenwashing is crucial to maintaining the credibility and effectiveness of sustainability efforts. To combat false or exaggerated claims of environmental sustainability, it is essential to establish mechanisms and strategies that promote transparency and authenticity.
One effective approach is to collaborate with reputable organisations specialising in sustainability solutions. Assessing their services, solutions, and existing partnerships when selecting partners ensures credibility and commitment to sustainability. By leveraging the expertise and resources of these organisations, the Green Credit Programme can ensure genuine contributions to environmental sustainability.
Additionally, creating adequate demand for authentic green credits is vital. Through comprehensive outreach strategies, the Green Credit Programme can raise awareness among potential credit buyers, increasing the demand for verified and reliable green credits. This emphasis on creating a viable market ensures that green credits are valued and recognised as genuine indicators of sustainable actions.
Furthermore, adopting reliable systems and technologically-driven methodologies for sustainability reporting is crucial. Once again, responsible organisations in the sustainability sector will lead the way.
By implementing robust monitoring and verification processes, the Green Credit Programme can ensure transparency and drive meaningful change. These systems serve as a foundation for accurate reporting and help combat greenwashing by providing transparent and auditable data.
For more social and governance
Source: Deccan Chronicle
