The Ministry of Environment, Forest and Climate Change has notified the methodology for calculation of Green Credit with respect to tree plantation. It supersedes the previous methodology as provided in the mail below.

The methodology laid down is as follows:

1. On completion of minimum 5 years of restoration activities in the degraded forest land parcel and after achieving a minimum canopy density of 40%. In such case the applicant may be eligible to submit a claim report in the format specified by the Administrator for award of Green Credit. Applicant will be liable to pay the verification fee as specified by the Administrator in consultation with the Central Government.
2. The Green Credit will 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 40% will have to be achieved in the degraded forest land parcel for issuance of Green Credit.  One Green Credit will be awarded for each new tree of the age more than 5 years.
4. The Green Credit generated for compensatory afforestation or tree plantation under the Green Credit programme activity will be non-tradable and non-transferable except for the transfer between the holding company and its subsidiary companies.
5. 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.
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/) will continue to be governed.
7. The Green Credit generated under the Green Credit Programme may be exchanged once, for any of the following purposes:
   1. 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;
   2. 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;
   3. 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. The Green credit will be extinguished once it has been exchanged for any of the purpose mentioned above.
9. The Green Credit generated in lieu of tree plantation may be used for reporting under environmental, social and governance leadership indicator.

For regulatory updates and update-related services, drop a mail at inquiries@lexplosion.in.

Source: Ministry of Environment, Forest, and Climate Change

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