Green Credit Programme India: Rules, Tree Plantation and How It Differs from Carbon Credits
What India's Green Credit Programme is, who runs it, how the tree plantation rules changed from February 2024 to August 2025, what green credits can be used for, and why they are not carbon credits.
How have the tree plantation rules changed?
The first methodology: 22 February 2024
On 22 February 2024, the government notified the first methodology for tree plantation, S.O. 884(E). Its main points were:
- State Forest Departments would identify degraded land under their control, including open forest, scrub land, wasteland and catchment areas.
- Each land parcel had to be free of encumbrances and at least 5 hectares.
- An applicant applied to ICFRE, was assigned land, and paid the cost of plantation and administration through a demand note.
- The Forest Department would complete the plantation within two years of payment.
- Credits were calculated at one green credit per tree grown, subject to a minimum density of 1,100 trees per hectare.
- Credits could be exchanged to meet compensatory afforestation requirements under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980, and could be used for reporting under the ESG leadership indicators or under corporate social responsibility (CSR) rules.
The revised methodology: 29 August 2025
The government revised the method on 29 August 2025 (PIB, 16 March 2026). According to the government's own description of the revised system:
- Green credits can be claimed only after at least five years of restoration work and once the land reaches a canopy density of at least 40%, which corresponds to "moderately dense forest".
- Planting must use a mix of native (indigenous) species suited to the site.
- A designated agency verifies the claim and reports to ICFRE before credits are issued.
- Monitoring covers canopy density, survival and growth of trees, soil and moisture conservation, biodiversity, protection, maintenance and spending (Green Credit Programme FAQ).
- Restored forest land can be exchanged to meet compensatory afforestation requirements under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980.
Published reports of the 2025 notification also say that the fixed 1,100 trees per hectare rule was dropped, that one credit is given for each surviving tree older than five years, and that these credits cannot be traded except between a holding company and its subsidiaries. Readers should check these points against the notification text on the Green Credit Programme portal, because the full 2025 text was not available to us from an official site when this article was written.
Sources: Gazette of India: Green Credit Rules, 2023, S.O. 4458(E), MoEFCC, 12 October 2023 (copy hosted by Puducherry DSTE); Gazette of India: S.O. 884(E), Methodology for calculation of Green Credit in respect of Tree Plantation, MoEFCC, 22 February 2024; PIB: Parliament Question, Green Credit Programme (MoEFCC, 16 March 2026); PIB: Notification issued for Green Credit Program (GCP) and Ecomark scheme (MoEFCC, 13 October 2023); PIB: Year End Review 2023, Ministry of Environment, Forest and Climate Change; Green Credit Programme portal: Frequently Asked Questions (ICFRE/MoEFCC); PIB: Parliament Question, Indian Carbon Market (MoEFCC, 9 December 2024); Mongabay India: Green credit rules tweaked to favour canopy cover, remove trade provision (September 2025), secondary source for orientation
This article was prepared with AI assistance and checked by the GreenEye team against the sources shown in each section.
Want to understand this for your home or company?
Talk to us. We are happy to explain what this means for you in plain words. We do not sell carbon credits and we cannot promise any result, but we can help you think it through.
Talk to usShare this article





