For more than a fortnight, the COP28 Summit grabbed global headlines for the diverse deliberations regarding solutions to mitigate the climate change crisis. The Summit not only witnessed consensus among nations on strategies to limit the global temperature increase within the 1.5-degree Celsius threshold, support vulnerable communities in adapting to climate change impacts, and achieve net-zero emissions, but it also concluded the first Global Stocktake.
This critical assessment examined progress in mitigating global warming, emphasizing the commitment of countries to forging a sustainable and resilient future through collaborative global initiatives. Notably, there was an uptick in declarations and pledges related to renewable energy, achieving the transition to net zero, and climate solutions. As nations converged in Dubai from all over the world, India made its presence felt through the innovative ‘Green Credits Programme’ that Prime Minister Narendra Modi introduced during the Summit.
Understanding Green Credits
Some elaboration is required to decode the intricacies and benefits of this Programme. To begin with, Green Credits offer a fresh and simplified alternative to the conventional carbon market. Governments and companies can effortlessly offset their greenhouse gas (GHG) emissions with these credits, obtained from entities actively supporting the environmental objectives. It’s a straightforward solution for a greener future.
It has been designed in a way that strengthens the PMs vision of LIFE – lifestyle for sustainable ecosystem. In essence, the initiative promotes voluntary actions that could counter the climate crisis by initially focusing on simplified actions like forestation, water harvesting etc. With the Indian Council of Forestry and Education (ICFRE) functioning as the nodal body, the ground-breaking project will be implemented through the PPP (public-private partnership) model.
ICFRE is developing a Green Credit Registry and a trading platform for facilitating the registration and trading of these green credits. Besides simplifying the registration and trading processes, going ahead ICFRE will also facilitate the international exchange of Green Credits. In turn, this Programme is expected to spur substantial global schemes to create carbon sinks and advance several Sustainable Development Goals throughout the world.
Launched with the UAE’s COP28 Presidency, India anticipates the participation of various nations in the knowledge-sharing and conceptualisation of the scheme. At this juncture, the Central Government through Ministry of Environment & Forests ( MoEFCC) is working on specific rules and regulations to implement and operationalise Green Credits.
At the Summit, Prime Minister Modi shared his vision on how the Programme is based on the idea of ecosystem services and allied activities that could be converted into an economic resource. In the same way that people accorded importance to their health cards, the PM stressed that they should begin thinking similarly about the environment. In this way, the Green Card could be akin to the Earth’s health card.
Furthermore, Green Credits also foster a sense of social responsibility, which is imperative in addressing the climate change challenge. The rationale behind the greening of community land, degraded lands, wastelands and river catchment areas is to create carbon sinks across India. People who are part of the programme will be compensated for their efforts. Moreover, this scheme will help in the revival and rejuvenation of natural ecosystems.
Select Benefits and Competitive Opportunities
For enterprises that are operating in India, the Programme presents some select opportunities. By taking an active part in this initiative, companies can contribute to sustainability objectives while also reaping major benefits. For example, the introduction of Green Credits will allow businesses to earn some additional revenue via environmental stewardship. By participating in approved, predetermined eco-friendly activities, entities could obtain Green Credits, thereby being in a position to monetise their positive environmental actions.
Furthermore, businesses stand to secure a distinct competitive edge in the market as an increasing number of consumers, investors, and stakeholders place a premium on sustainability. Therefore, companies with a robust portfolio of Green Credits will be in a position to command premium prices for their offerings and attract more customers as well as potential investors who seek to invest in sustainable ventures.
It is a novel and optional program that benefits more than just corporates; as it also equips individuals to become champions of environmental sustainability. Distinguishing itself from conventional environmental initiatives, this program uniquely fosters a sense of personal environmental responsibility by acknowledging and rewarding individuals for their positive contributions. By doing so, it transforms the concept of environmental stewardship, turning it into a collective human endeavour. By making environmental incentives available to everyone, it reinforces the idea that even small, daily actions can significantly contribute to the overarching goal of global sustainability.
Within the dynamic field of international climate action, India’s Green Credits Program stands out as a trailblazing project with the capacity to change the game. It promotes a sense of collective responsibility by moving the emphasis from just carbon offsets to a holistic and inclusive approach that encompasses businesses, communities, and individuals. In addition to addressing environmental issues, the Green Credits Program presents a new paradigm in which sustainability is a shared ethos rather than only a corporate objective.
While various countries coming together at the COP28 Summit has helped in bolstering the war against the climate crisis, financing climate initiatives continues to remain a key concern among nations. Here again, India has played a proactive role in supporting discussions on the global financial package called the ‘Loss and Damage’ Fund. This fund is meant to make reparations to countries of the Global South for the negative effects of climate change in their regions.
In essence, India’s proactive engagement at COP28, exemplified by the groundbreaking Green Credits Program, represents a crucial step in the global fight against climate change. This innovative initiative not only provides tangible benefits for businesses but also empowers individuals to actively participate in environmental stewardship. As the world grapples with the pressing need for sustainable solutions, India’s relentless commitment to collaboration and initiatives underscores its dedication to forging a resilient and environmentally conscious future. We are at a pivotal juncture of union where it’s important to chart a course for sustainable development with collective efforts from communities, businesses, and individuals in confronting the urgent challenges of the climate crisis.
