The “green credits” initiative unveiled by Indian Prime Minister Narendra Modi represents a turning point in global efforts to combat climate change. Unlike traditional carbon credits, often criticized for their effectiveness and integrity, “green credits” focus on voluntary environmental actions involving the community, private industry and individuals. This approach, focused on creating carbon sinks and restoring degraded land, promises a broader involvement and a renewed perspective in the fight against global warming.
Indian Innovation at the Heart of the Initiative
The project, launched in October by India’s Ministry of Environment, focuses on water conservation and reforestation projects. By creating an incentive market for environmental actions, India hopes to stimulate proactive participation in its sustainable development goals. India’s Foreign Secretary, Vinay Mohan Kwatra, points out that the initiative aims to restore the vitality of wastelands and river catchment areas, with an approach focused on tree planting and ecological regeneration.
International Response and Commitment of the United Arab Emirates
At the 28th COP in Dubai, the United Arab Emirates officially joined the Green Credit Initiative (GCI), and India called on other countries to follow suit. This marks international recognition of the importance of India’s approach, and underlines the evolution of strategies to combat climate change worldwide.
Challenges and prospects of the voluntary carbon market
The voluntary carbon market (VCM) has recently been rocked by criticism of the effectiveness of numerous projects, leading to a drop in liquidity and confidence. According to Platts, a division of S&P Global Commodity Insights, the price of nature-based carbon credits for 2023 has reached a record low of $4/mtCO2e. The “green credit” initiative thus appears to be a timely and potentially more credible response to these challenges.
India’s Green Credit Initiative, with its innovative and participatory approach, offers a new path for the environmental credit market. By bringing together technology, community and conservation, GCI could redefine the way we approach and respond to climate challenges, paving the way for more inclusive and effective action.
