Expanding tree cover is crucial

India, aiming for net-zero emissions by 2070, is significantly behind its National Forest Policy target of 33% forest and tree cover (currently at 25.17%). With accelerating climate change and external carbon regulations (like EU’s CBAM), afforestation and carbon sequestration are becoming strategic tools for environmental, economic, and trade resilience.

Environmental and Policy Dimensions

• Forest Cover Deficit: India’s forest and tree cover is 17%, far below the 33% target of National Forest Policy, 1988, raising concerns over ecological sustainability and carbon sink capacity.
• Policy Initiatives and Green Missions: Key programmes include the Green India Mission (under NAPCC), which increased forest cover by 56% (2017–21), and the National Agroforestry Policy (2014) that promotes tree plantations outside traditional forests.
• Agroforestry and Rural Sustainability: Agroforestry enhances soil fertility, water retention, and income diversification, with 20–30% increase in farm income as per ICAR, thereby aligning ecological benefits with rural livelihood enhancement.

Industrial Strategy and Trade Implications

• Industry-Driven Afforestation via CSR and Carbon Credits: Industries are investing in tree plantations to generate carbon credits under the Verified Carbon Standard and CDM, as a cost-effective alternative to buying expensive EU credits (avg. €83/tonne CO? in 2023).
• Global Trade Pressures and CBAM Impact: EU’s Carbon Border Adjustment Mechanism (CBAM), effective 2026, poses tariff threats on high-emission goods like cement and steel, pushing Indian exporters to reduce carbon footprints via afforestation.
• ESG and Competitive Advantage: Sustainability is now a strategic business imperative, with green supply chains, carbon offsetting, and ESG compliance crucial to attracting global investment and securing export markets.

Carbon Policy Reform

• High Cost of Global Carbon Credits: With EU carbon credits averaging €83/tonne, afforestation offers a cost-effective domestic alternative for industries to meet emission obligations and avoid trade penalties.
• Lack of National Carbon Market Framework: India lacks a transparent carbon credit registry, Article 6-compliant trading mechanism, and financial incentives, hindering private sector afforestation investments.
• Need for Institutional and Community Participation: To achieve large-scale afforestation, India needs community-led models, training & market support, and robust monitoring, aligning environmental outcomes with socio-economic co-benefits.

Practice Question

Q. Tree plantations are emerging as a key strategy for climate mitigation, rural development, and industrial competitiveness in India. Critically evaluate the ecological, economic, and policy challenges in implementing afforestation at scale in India.