Green Credit Scheme

Explanation :

• On 9^th January, 2020, the Forest Advisory Committee (FAC) approved Green Credit Scheme that would allow forests to be traded as a commodity.
• The scheme allows agencies like private companies, village forest communities, etc. to identify lands for forest cultivation and ensures plantations carried out.
• After 3 years, these identified lands would be considered as compensatory forest land after meeting forest department’s criteria.
• An industry that needs forest land could approach these agencies and pay them for such forested land. This would then be transferred to the forest department and also recorded as forest land.

Impact

• Will encourage plantation by individuals outside the traditional forest area.
• Will also help in solving land acquiring issues of various industries which find it hard to acquire appropriate non-forest land.
• Will help in meeting international commitments such as Sustainable Development Goals and Nationally Determined Contributions.