Regulatory updates

Recently, the Government of India (GOI) launched the Green Credit Programme (GCP) under the Lifestyle for Environment (LIFE) initiative¹⁴ The idea of LiFE was introduced by India during the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow in 2021. The idea promotes an environmentally conscious lifestyle that focuses on ‘mindful and deliberate utilisation’ instead of ‘mindless and wasteful consumption. . The aim of the GCP is to incentivise environment positive actions and encourage sustainable lifestyle by driving consumer and community towards behavioural changes that promote environment friendly actions. Under the GCP, green credit would be generated, which would be tradable on a domestic market platform.

As part of the GCP, on 12 October 2023, the Ministry of Environment, Forest and Climate Change notified the Green Credit Rules, 2023 (the Rules). Some of the key provisions of the Rules are discussed below:

• Applicability and scope: The Rules specify that green credit would be independent of carbon credit under the Carbon Credit Trading Scheme, 2023 made under the Energy Conservation Act, 2001. However, it has been specified that an environmental activity generating green credit may have climate co-benefits as well, such as reduction or removal of carbon emissions and may thus, be eligible for obtaining both green as well as carbon credit for the same activity. Industries, companies and other entities may undertake voluntary environmental measures by generating or buying green credit. The Rules came into force from the date of publication in the Official Gazette, i.e., 12 October 2023.
• Eligible activities: The Rules lay down certain activities w.r.t. protection, preservation or conservation of environment, which would be eligible for generation of green credit. These are:

• Tree plantation – to promote activities for increasing the green cover across the country
• Water management – to promote water conservation, water harvesting and water use efficiency or water savings, including treatment and reuse of wastewater
• Sustainable agriculture – to promote natural and regenerative agricultural practices and land restoration to improve productivity, soil health and nutritional value of food produced
• Waste management – to promote circularity, sustainable and improved practices for waste management, including collection, segregation, and environmentally sound management
• Air pollution reduction – to promote measures for reducing air pollution and other pollution abatement activities
• Mangrove conservation and restoration – to promote measures for conservation and restoration of mangroves
• Ecomark label development – to encourage manufacturers to obtain ecomark label for their goods and services, and
• Sustainable building and infrastructure – to encourage the construction of sustainable buildings and other infrastructure using environment friendly technologies and materials.

• Procedure and methodology: The Rules specify that:

• A person or entity desirous of obtaining green credit must register the activity with the administrator (i.e., the Indian Council of Forestry Research and Education)
• On receipt of the application, the administrator would get the activity verified by a designated agency. Upon satisfactory verification, green credit certificate would be granted to the applicant
• The methodology for calculating green credit in respect of any activity undertaken would be notified by the Central Government in due course.

To access the text of the Rules, please Click here

‘Water management’ has been identified as one of the eligible activities for generation of green credit. In this regard, pursuant to the issue of the Rules, on 23 October 2023, the GOI issued the draft methodology for water harvesting based green credit (the methodology). The methodology lists down certain key details, such as – the type of project, site selection process, water conservation/harvesting structures, calculation of issuance of green credit, etc.

The methodology would come into effect on or after the expiry of a period of 15 days from the date of publication of the methodology in the Official Gazette, i.e., 23 October 2023.

To access the text of the methodology, please click here

The Plastic Waste Management Rules, 2016 lay down the regulatory requirements with respect to collection, segregation, processing, treatment and disposal of plastic waste in an environmentally sustainable manner. On 14 March 2024, the Ministry of Environment, Forest and Climate Change (MOEFCC) notified the Plastic Waste Management (Amendment) Rules, 2024 (the Amendment Rules). Some of the key amendments introduced relate to:

In order to ensure uniformity in the implementation of the aforesaid instructions among the REs, RBI, vide a notification dated 27 March 2024 has stated that:

• Definitions : Rule 3 of the Plastic Waste Management Rules, 2016 defines certain key terms. The Amendment Rules have issued the revised definitions of the following:

• Biodegradable plastics
• Importer
• Manufacturer
• Producer
• Seller.

• Revised conditions: Certain amendments have been introduced to Rule 4 of the Plastic Waste Management Rules, 2016 with respect to conditions for manufacture, importer stocking, distribution, sale and use of carry bags, plastic, etc. It has now been specified that the manufacture of carry bags and other commodities would be permitted to be made from compostable or biodegradable plastics, subject to mandatory marking and labelling regulations. Also, the manufacturers of compostable or biodegradable plastic carry bags or commodities must obtain a certificate from the Central Pollution Control Board (CPCB) before marketing or selling their products.
• New category for biodegradable plastics: A new category for biodegradable plastics (category V) has been introduced, with specific labelling requirements and separate markings to be designated.
• Annual report: The Amendment Rules have laid down the requirement of preparation of mandatory annual report by a person engaged in recycling or processing of plastic waste and its submission to the concerned local body, the State Pollution Control Board (SPCB) or the concerned pollution control committee by 30^th April every year.
• Compliance with EPR targets: It has been specified that the manufacturers/importers must meet the minimum recycling levels for plastic packaging waste as specified in the Extended Producer Responsibility (EPR) targets.

Effective Date: The Amendment Rules came into force from the date of publication in the Official Gazette, i.e., 14 March 2024.

To access the text of the Amendment Rules, please click here