Frequently asked questions

A green credit is a unit of incentive given for a specified environmental activity under India's Green Credit Rules, 2023, notified on 12 October 2023. As of October 2026, green credits are issued for restoring degraded forest land through tree plantation, after verification by a designated agency and ICFRE.

A green credit rewards an environmental activity under the Environment (Protection) Act, 1986, while a carbon credit under India's CCTS represents 1 tonne of CO2 equivalent under the Energy Conservation Act, 2001. The Green Credit Rules say the programme is independent of the CCTS, although one activity may earn both.

The Indian Council of Forestry Research and Education (ICFRE), Dehradun, is the Administrator under Rule 7 of the Green Credit Rules, 2023. A Steering Committee set up by the Central Government reviews the programme, designated agencies verify activities, and State Forest Departments register land and work on the ground.

Green credits are earned by registering on the Green Credit Programme portal, taking up restoration of a degraded forest land parcel registered by a State Forest Department, and claiming credits once the work is verified. Under the method revised on 29 August 2025, a claim can be made only after at least five years of restoration and a canopy density of at least 40%.

Restored forest land under the programme can be exchanged to meet compensatory afforestation requirements under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980, according to the government (PIB, 16 March 2026). The February 2024 methodology also allowed use in ESG leadership indicator or CSR reporting; check the current notification and the CSR rules with an adviser before relying on this.

Not freely, as of October 2026. The Green Credit Rules, 2023 provide for a domestic trading platform, but they also say credits used to meet a legal obligation are not tradable, and reports of the August 2025 methodology say tree plantation credits can be transferred only between a holding company and its subsidiaries.

No, a green credit is not 1 tonne of CO2. For tree plantation it is linked to trees and restored canopy on degraded forest land, and how much carbon those trees store varies with species, age, soil, rainfall and survival.

Not under the method that is working as of October 2026, which covers degraded forest land registered by State Forest Departments. The Rules list other activities, such as sustainable agriculture and water management, but a methodology has to be notified for each before credits can be earned.