New Delhi, Sept. 1 -- A minimum 40% canopy density following at least five years of restoration activities in a degraded forest land parcel has been made an eligible criterion for grant of green credit to an applicant, the Union environment ministry has said in a notification. This green credit, according to the notification issued on August 29, can thereafter be used even by private entities and companies for leadership indicators in environmental, social and governance. The notification refers to the methodology for calculating green credit for a plantation activity. The Centre had in October 2023 enacted the Green Credit Rules, 2023 under sections 3, 6 and 25 of the Environment (Protection) Act, 1986. HT had on February 27, 2024 cited a notification by the ministry to report that corporations, other private entities can take up plantations on degraded land, including open forest and scrub land, wasteland and catchment areas, under the administrative control of states that have been identified by forest departments. These plantations will help generate green credits which can be traded and used as a leadership indicator under corporate social responsibility (CSR), the notification dated February 22, 2024 had said. Now, the new notification on Friday has also provided a threshold for a plantation to be considered for green credit. "On completion of minimum five years of restoration activities in the degraded forest land parcel(s), and after achieving a minimum canopy density of 40%, the applicant shall be eligible to submit a claim report in the format specified by the Administrator for award of Green Credit and applicant shall be liable to pay the verification fee as specified by the Administrator in consultation with the Central Government," the notification says, adding that "the Green Credit shall be calculated based on the vegetation status including the change in the canopy density and the number of surviving trees." The new notification has further specified that "the minimum canopy density of 40% shall have to be achieved in the degraded forest land parcel for issuance of Green Credit and one Green Credit shall be awarded for each new tree of the age more than five years."...