Green Credits Linked to Canopy Density
GK & Current Affairs for CLAT | CLAT Current Affairs 2026
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Introduction
India is taking significant strides in integrating environmental sustainability with economic policy. One such initiative is the Green Credit Programme (GCP), launched by Prime Minister Narendra Modi at the UN Climate Conference in Dubai (COP28) in November 2023. The GCP aims to incentivize eco-friendly practices through a system of tradable credits for activities such as afforestation, water conservation, and waste management.
In August 2025, the Union Environment Ministry revised the methodology of granting green credits for tree plantation. Now, credits will be awarded only after a minimum of five years, provided plantations achieve a minimum canopy density of 40% and demonstrate survival. This new approach shifts the focus from mere tree planting numbers to tree survival and ecosystem health, addressing long-standing criticisms of India’s plantation drives that often neglected long-term sustainability.
For aspirants preparing for CLAT Current Affairs 2026, this policy change is highly relevant. It not only deals with environmental law and policy but also reflects India’s commitment to sustainable development goals (SDGs). Those seeking the best online coaching for CLAT must recognize how such schemes blend law, policy, economics, and environmental science into one comprehensive governance mechanism.
Why in News
- The Union Environment Ministry announced a new methodology for awarding green credits under the GCP.
- Tree plantation credits will be given only after five years, based on:
- Minimum canopy density of 40%.
- Tree survival rather than just the number planted.
- Credits will be non-tradable and non-transferable, except in the case of transfer between a holding company and its subsidiaries.
- So far, 57,986 hectares of degraded land have been registered under the programme.
- This marks a shift from the earlier benchmark of 1,100 trees per hectare within two years, which focused on quantity over quality.
This policy overhaul is significant for Current Affairs 2026 because it highlights the balance between economic incentives and ecological responsibility.
Point-wise Summary
- Background of GCP
- Launched in 2023 at the UN Climate Conference in Dubai.
- Aims to incentivize eco-friendly practices like afforestation, water conservation, and sustainable waste management.
- Based on market trading of green credits.
- New Rules (2025 Revision)
- Credits for plantations awarded only after 5 years.
- Plantation must achieve minimum canopy density of 40% and survival.
- Credits will be non-tradable and non-transferable, except for intra-company transfers.
- Old Rules vs New Rules
- Old benchmark: 1,100 trees per hectare within two years.
- New benchmark: Survival and canopy density after five years.
- Focus shifted from quantity to quality of plantations.
- Implementation Status
- Nearly 57,986 hectares of degraded forest land registered under GCP.
- Credits linked to restoration activities in designated areas.
- Key Incentives for Stakeholders
- Companies, groups, and individuals can participate voluntarily.
- Green credits can be used for reporting under environmental, social, and governance (ESG) norms.
- Credits will motivate industries to meet Corporate Social Responsibility (CSR) obligations.
- Policy Implications
- Encourages survival-focused plantations rather than tokenistic planting.
- Aims to improve biodiversity, ecosystem restoration, and carbon sequestration.
- Provides a globally calibrated system aligning with climate commitments.
Explanation of Peculiar Terms (Notes)
- Green Credit Programme (GCP):
A market-based mechanism to incentivize eco-friendly practices by issuing “green credits” for activities like afforestation and water conservation. - Canopy Density:
The proportion of land covered by the crowns of trees. A minimum canopy density of 40% ensures meaningful forest cover. - Non-tradable and Non-transferable Credits:
Credits cannot be sold or transferred for profit in the open market, ensuring their use for genuine environmental commitments. - ESG (Environmental, Social, and Governance):
A set of standards for companies to measure sustainability and ethical impact, widely used by investors. - Afforestation vs Reforestation:
- Afforestation: Creating a forest where none existed before.
- Reforestation: Restoring a forest in degraded or deforested land.
CLAT-Oriented Analysis
- Relevance for CLAT Current Affairs 2026
- GCP is an intersection of law, economics, and environment, making it an important exam topic.
- It reflects India’s compliance with international climate commitments (Paris Agreement, COP28).
- Legal Angle
- Connects to Article 48A of the Indian Constitution (State’s duty to protect the environment).
- Relates to judicial precedents like MC Mehta v. Union of India (environmental protection).
- Potential CLAT Questions
- What is the minimum canopy density required for green credits under GCP?
- When was the Green Credit Programme launched and by whom?
- How does GCP link with corporate CSR obligations?
- Strategic Importance
- Aligns India’s domestic environmental policy with global SDGs.
- Promotes a quality-over-quantity approach to climate action.
Conclusion
The revision of the Green Credit Programme marks a crucial shift in India’s environmental governance framework. By linking credits to canopy density and survival after five years, the government emphasizes long-term ecological health over superficial plantation drives.
This move strengthens India’s global image as a responsible climate actor while ensuring accountability among corporations, institutions, and individuals. For CLAT aspirants, this topic is a vital case study showing how law, governance, and environment intersect in policymaking.
For students preparing with the best online coaching for CLAT or seeking online coaching for CLAT, such developments are must-know areas for CLAT Current Affairs 2026 and beyond. Understanding these policies enhances not just exam readiness but also awareness of the broader legal-environmental landscape.
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