The Green Credit Rules create a framework in which environmentally beneficial activities can earn โgreen creditsโ that are tradable in a domestic market. Activities such as tree plantation on degraded land, water conservation or pollution abatement can generate credits if they meet specified criteria. By attaching economic value to such actions, the programme seeks to encourage wider participation by individuals, communities and firms. It thus complements command-and-control regulation with market-based incentives aligned with sustainable development goals. (moefcc-gcp.in)
Option A:
This option is incorrect because the Green Credit Rules do not replace all environmental regulations; they operate alongside existing laws. A single carbon tax would also be much narrower than the multi-activity scope of the programme.
Option B:
This option is wrong as credits are earned only when specified environmental actions are undertaken and verified. The programme does not offer unconditional cash transfers but performance-linked incentives.
Option C:
This option correctly captures the intention of the scheme: to reward verifiable positive environmental actions with tradable credits. It highlights both the incentive structure and the focus on activities such as plantation and restoration.
Option D:
Allowing blanket conversion of forest land into real estate in exchange for credits would undermine conservation goals. The rules seek to support ecological improvement, not legitimise deforestation.
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