Private Entities In Madhya Pradesh Set To Restore Degraded Forests For Carbon Credits
The state’s new draft policy encourages private investment in afforestation projects to restore 3.7 million hectares of degraded forest, offering carbon credits and promoting environmental sustainability
Madhya Pradesh is taking a bold step toward restoring its degraded forests by involving private players in afforestation projects. A new draft policy, titled ‘Forest Restoration Using CSR, CER, and Non-Governmental Funds,’ released by the state’s forest department, reveals plans to restore a significant portion of the state’s 3.7 million hectares of degraded forest land, out of a total of 9.5 million hectares of forest.
The state government aims to address the ecological damage caused by the large-scale degradation of these forests, which has left a critical gap in the provision of ecological services and disrupted forest-based livelihoods for local communities. Faced with limited government funding, the policy seeks to tap into private resources to drive large-scale ecological restoration and enhance the green cover.
The policy outlines the involvement of industrial groups, corporate entities, individuals, and voluntary organizations, encouraging them to participate by restoring degraded forest lands ranging from a minimum of 10 hectares to a maximum of 10,000 hectares for a period of 60 years. Contributions from Corporate Social Responsibility (CSR) and Corporate Environmental Responsibility (CER) funds are encouraged to support the initiative.
The afforestation cost is projected to range from Rs 5 lakh to Rs 8 lakh per hectare, depending on the location, size, soil conditions, and climate of the land. Investors who participate in the program will be entitled to carbon credits for the duration of the 60-year contract, with joint forest management committees (JFMCs) retaining a 10 per cent share of the credits. However, while investors will have the rights to the carbon credits, no land ownership rights will be granted, and the state government will retain ownership of timber harvested from the trees.
Importantly, investors will have the flexibility to select species for plantation but will be prohibited from planting exotic species, ensuring that the restoration efforts align with the natural ecosystem. The initiative will operate under existing laws, including the Forest (Conservation) Act, 1980, and the Indian Forest Act, 1927, with additional provisions to safeguard the rights of local communities under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.
The policy also includes a tripartite agreement between the investor, the Madhya Pradesh State Forest Development Corporation (MPSFDC), and the JFMCs, which will outline the roles and responsibilities of each stakeholder, ensuring clear governance and accountability for the restoration efforts.
This initiative represents a significant opportunity for both environmental and economic benefits, creating a model where private entities play a critical role in restoring the state’s degraded forests while generating carbon credits to offset emissions, contributing to both ecological and climate change mitigation goals.
