Overview

• An August 29 MoEFCC notification shifts tree-plantation credits from immediate, per-tree awards to an outcome-based system tied to canopy change and surviving trees.
• One green credit will be granted for each tree that survives beyond five years once a restoration parcel achieves at least 40% canopy density.
• Applicants must submit a claim report, pay a verification fee, and undergo evaluation by designated agencies before credits are issued.
• Credits are non-tradable and non-transferable except within a holding company and its subsidiaries, and they may be exchanged once for compensatory afforestation, CSR obligations or project-linked plantation requirements before being extinguished.
• Projects that already deposited payments under the 2024 rules are grandfathered under that framework, while new claims follow the revised methodology and may be used for ESG leadership reporting.