The Ministry of Environment, Forest and Climate Change (MoEF&CC) on August 29, 2025, issued a notification regarding the revised Methodology for Green Credit Calculation under Tree Plantation Activities.
The following has been stated: -
•The Central Government has notified a revised methodology under Rule 5 of the Green Credit Rules, 2023, for calculating Green Credit from tree plantation activities.
•Credits are awarded after 5 years of restoration, achieving 40% canopy density, with 1 Green Credit per surviving tree over five years old.
•Such Green Credits are non-tradable, except within holding and subsidiary companies, and may be used once for compensatory afforestation, CSR obligations, or project compliance.
•Once exchanged, credits are extinguished, and their use for ESG reporting is permitted as per applicable laws.
The detailed notification is given in the document below.
[Notification No. G.S.R. 592(E)]
