Maharashtra: Government to give 'tree credits' as an incentive for planting trees

The state government may soon make money grow on trees. For, it is planning to establish a system on lines of carbon credits, where "tree credits" can be given as an incentive to those planting trees.

The credits will be purchased by polluting industries, making Maharashtra the first in India to implement this system. In the concept, which is being worked out, the state is eventually planning to establish a corporation where these credits, which will be geo-tagged with the tree's latitude and longitude, can be traded and sold like on the stock market or commodity exchange.

While ensuring participatory afforestation, income for farmers and enforcing the polluter pays principle, it will boost green cover in Maharashtra. 

A five-member committee will submit it's report by September with details of the policy and proposed regulatory framework. The measure is expected to boost afforestation in Maharashtra, which has just 20.01% of recorded forest areas (RFAs) compared to 23.26% nationally. The National Forest Policy, 1988, has a target of 33%.

The plan will reward people growing wood trees like saag, neem, babhool, and mohua. The state may launch a pilot project in drought-affected areas like Marathwada with low forest cover. "We are planning a legislation for establishing the tree credits system," finance and forests minister Sudhir Mungantiwar told dna.

"Once a farmer plants trees, it will get a unique number based on the latitude and longitude," added Mungantiwar, stating that these tree credits could be traded like in the share or commodity markets. A specialised company will be formed to control and monitor the system. Mungantiwar said they could make it mandatory for candidates in local body polls to have tree credits like the rule mandating that they have a toilet at home. Schemes like concessions to tourism projects holding credits and polluting industries like thermal power plants purchasing a certain number of tree credits can be evolved.

Former Indian Forest Service (IFS) officer and ex-director general of social forestry, Tasneem Ahmed, who thought of this concept and is part of the committee, said they wanted to reward people who planted trees with maximum capacity for long-term carbon sequestration. This will mitigate the crisis due to use of fossil fuels and release of greenhouse gases.

While adopting the Supreme Court's "polluter pay" principle, the plan involves "transfer of money from polluters to those farmers who plant trees and look after them." Tree credits will be credited to the demat account of planters and can be encashed from the government (for eventual sale to industries) at the rate to be advertised annually or sold to polluting industries. Eventually, there are plans to enable market trading of credits.

"Tree credits will increase as the ability of the tree to absorb carbon rises," said Ahmed, adding that credits can accrue till the age of 55 years and then decline, considering its reducing ability to absorb carbon dioxide.

Once it is past its prime, the tree can be cut for wood to replace plastic and metals like iron and aluminium which can damage the environment. Ahmed said a pilot could be launched for new plantations in drought-prone areas like Marathwada with low forest areas. This will ensure that farmers get a fixed income. Industries like sugar mills can be made to buy tree credits annually. The system will eliminate lacunae in the present social forestation system.

A forest official said purchase of tree credits could be made compulsory if forest land was to be diverted for non-forest purposes or if trees were to be felled for projects like roads. Credits will be accrued after actual physical verification. The government will also declare a minimum support price under which tree credits cannot be sold.