Modi Launches Green Credit Initiative at COP28

In his keynote address at #COP28 on 1st December 2023, Indian PM Narendra Modi put forward the Green Credit Initiative (#GCI). Initiated in India with some success to combat #ClimateChange, the GCI is now being shared and promoted to other Parties globally via the #COP platform.

“The manner in which we give importance to our Health Card in life, we have to similarly start thinking in the context of environment. We will have to see what is to be done to add positive points to Earth’s Health Card. I think this is what Green Credit is.”

Indian PM Narendra Modi

It is to be recalled that in October 2023, the Ministry of Environment of India launched the Green Credit Program (GCP). The GCP is based on two pillars of action, namely, afforestation and water conservation.

India highlighted that the GCI is ‘a market-based mechanism designed to incentivize voluntary climate actions across diverse sectors by various stakeholders like individuals, communities and companies.’

The main objectives of the GCI are as follows:

  1. Promote tree plantation and carbon sinks;
  2. Encourage water conservation;
  3. Propagate sustainable agriculture;
  4. Foster waste management and circular economy; and
  5. Apply technologies to cut emissions.

A special side event focusing on the Green Credit Initiative, co-hosted by Indian PM Modi and Swedish PM Kristersson, was scheduled during COP28. Then, along with Swedish PM Ulf Kristersson, Mozambican Filipe Nyusi and European Council President Charles Michel, Modi proceeded to officially launch the web portal of the Global Green Credit Initiative (GGCI).

Based on the Carbon Credit, the Green Credit extends the concept from reducing carbon footprint to encouraging all manner of actions which are beneficial to the environment. In addition, while Carbon Credits target mostly corporates and governments, Green Credits can be availed by communities and individuals.

Although the mechanics of the Green Credit trading still need to be refined, one interesting proposal would be to integrate it within the Corporate Social Responsibility (CSR) and the Individual Social Credit frameworks.

“Strong climate action requires strong climate finance. We need more innovative sources of financing and we welcome this great initiative. Green Credits are a great idea to incentivize environmentally-friendly efforts.”

EC President Charles Michel