Government of India launched Green Credit Program (GCP) under Environment Ministry to create market-based incentives for environmental restoration. Program allows individuals, communities, private sector to earn tradeable Green Credits through afforestation, water conservation, sustainable agriculture, waste management activities. Credits can be traded on domestic market platform. Aims to achieve net-zero emissions by 2070, complement existing regulatory frameworks. Program operational since October 2023, targeting various stakeholders including farmers, industries, NGOs for voluntary environmental actions beyond compliance requirements.

The Green Credit Program represents India's shift from purely regulatory environmental compliance to market-driven conservation incentives. Under this mechanism, entities earn credits through quantifiable environmental activities - one Green Credit equals one unit of environmental benefit like planting trees, water harvesting, or organic farming adoption. These credits become tradeable commodities, allowing credit-surplus entities to sell to those needing environmental offsets. The program addresses India's climate commitments under Paris Agreement while creating economic opportunities for rural communities and environmentally-conscious businesses. It complements existing schemes like CAMPA, Compensatory Afforestation, but introduces competitive pricing for environmental services. The domestic trading platform ensures transparency and prevents double-counting. For UPSC aspirants, this exemplifies how India balances economic development with environmental sustainability, creating market solutions for climate action while supporting rural livelihoods and corporate ESG goals.