Environment

Environment Ministry Ignored Legal Warnings, Went Ahead with Green Credit Scheme: Report

The ministry insisted that the scheme was aligned with the Environment (Protection) Act and supported environmental protection efforts.

Environment Ministry Ignored Legal Warnings, Went Ahead with Green Credit Scheme: Report

Vast forested terrain in the Aravalli range of Rajasthan. (Bill Photo)

The Union Environment Ministry went ahead with the launch of the Green Credit Program (GCP) despite concerns raised by the Union Law Ministry’s legislative department, The Indian Express reported on March 31.

Documents accessed under the Right to Information (RTI) Act reveal that the legislative department had cautioned that the provisions of the Environment (Protection) Act, 1986, may not support the business model outlined in the scheme. However, the environment ministry dismissed these concerns and proceeded with the program.

The Green Credit Program, introduced in 2023, aims to incentivize voluntary environmental actions such as afforestation by issuing green credits to individuals, businesses, and communities.

These credits, once verified by the Indian Council of Forestry Research and Education (ICFRE), can be traded on a dedicated platform. The ministry has positioned the scheme as a tool to encourage afforestation and water conservation.

However, critics argue that it could have adverse effects on ecosystems, as it allows entities to plant trees on "degraded lands," a classification that includes ecologically crucial scrub forests and grasslands. Environmental experts have warned that such an approach could harm biodiversity and disrupt native ecosystems.

In March, the Supreme Court sought a response from the environment ministry after environmental groups and retired civil servants raised concerns.

A letter signed by 91 retired bureaucrats criticized the scheme, stating that it could facilitate the acquisition of forest land by industrialists in exchange for monetary compensation through green credits, instead of maintaining the earlier "land-for-land" policy.

Despite legal concerns flagged by the legislative department, the environment ministry continued with the program. On August 18, 2023, Union Environment Minister Bhupender Yadav approved the final draft of the Green Credit Rules before sending it for vetting.

According to the newspaper, on October 5, the legislative department advised the ministry to consult the Department of Legal Affairs regarding the legality of the proposed rules.

“Perhaps, the provisions of the Environment (Protection) Act, 1986, do not support such business objects or activity and rules to be framed for the purposes. In view of the above, the administrative ministry may examine the legality of the proposed Green Credit Rules in consultation with the Department of Legal Affairs,” the legislative department noted.

However, the ministry insisted that the scheme was aligned with the Environment (Protection) Act and supported environmental protection efforts.

Internal correspondence from October 10, 2023, revealed that ministry officials justified the program by citing the central government's authority under the Environment (Protection) Act to implement nationwide environmental initiatives.

However, the legislative department reiterated its concerns in January 2024, stating that it had not received any legal advice confirming the program's validity. In response, the environment ministry merely referred back to its earlier submissions, maintaining that the rules aligned with its mandate.

The Green Credit Program remains under scrutiny as the Supreme Court reviews the legal and environmental implications of the scheme, while the environment ministry has sought additional time to respond.

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