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Tree Plantation and Carbon Sequestration
Expanding tree cover is crucial
Context: As climate change accelerates, India faces the twin challenge of maintaining economic growth while mitigating environmental degradation. One powerful solution lies in expanding tree plantations, which offer both carbon sequestration and socio-economic benefits.
Tree Cover: A Strategic Imperative
- India’s current forest and tree cover stands at 25.17%, well below the 33% target of the National Forest Policy (1988).
- This gap is alarming amid growing threats from deforestation, urbanisation, and industrial emissions.
- Tree plantations serve as natural carbon sinks, absorbing and storing atmospheric carbon dioxide (CO₂). Their benefits extend far beyond carbon sequestration:
- They improve soil health and groundwater recharge,
- Reduce soil erosion and runoff,
- Mitigate the impact of extreme weather events.
- Given the multifaceted benefits, large-scale afforestation is not just an environmental need but a strategic development tool.
National Policies Driving Afforestation
- Recognising the importance of tree cover, India has introduced several policy initiatives:
- The National Agroforestry Policy (2014) promotes tree planting on private lands and encourages farmers and industries to participate.
- The Trees Outside Forests in India (TOFI) program focuses on involving private landowners in afforestation efforts, thereby reducing pressure on natural forests for timber and fuelwood.
- These initiatives aim to restore degraded ecosystems, diversify income sources for rural populations, and boost the productivity and resilience of landscapes.
- The Green India Mission (GIM), a core component of the National Action Plan on Climate Change, seeks to enhance forest quality and cover. Between 2017 and 2021, GIM helped increase India’s forest cover by 0.56%, according to government data.
Industry’s Role in Sequestration and Sustainability
- Corporate India has increasingly embraced afforestation under Corporate Social Responsibility (CSR). Sectors like automobiles, cement, and energy have launched plantation drives to offset emissions.
- These efforts are not merely symbolic—they are now integrated into companies’ long-term carbon credit strategies, enabling firms to:
- Claim verified emission reductions,
- Restore ecosystems,
- Align with global standards such as the Verified Carbon Standard (VCS) and Clean Development Mechanism (CDM).
International Trade Pressures: The EU Factor
- Indian industries now face global regulatory pressures. The European Union’s Carbon Border Adjustment Mechanism (CBAM)—slated for implementation in 2026—will levy carbon tariffs on imports such as steel, cement, and aluminium.
- Given that India-EU trade stood at €124 billion in 2023, these carbon taxes could significantly impact Indian exports.
- To stay competitive, Indian companies are:
- Investing in carbon-offsetting afforestation projects,
- Developing green supply chains,
- Sourcing from sustainable forestry,
- Enhancing energy efficiency in manufacturing.
- Today, sustainability is more than compliance—it has become a strategic advantage in global markets, with investors increasingly valuing companies based on Environmental, Social, and Governance (ESG) criteria.
Afforestation’s Economic and Social Returns
- Large-scale tree plantation initiatives have a strong economic rationale. They generate millions of jobs, particularly in:
- Nursery management,
- Forest conservation,
- Agroforestry activities.
- Agroforestry—the integration of trees into agricultural systems—has proven especially promising. It enhances soil fertility through improved nutrient cycling, diversifies farm income via timber, fruits, and medicinal plants, and improves drought resilience. A study by the Indian Council of Agricultural Research (ICAR) reported that agroforestry can increase farm incomes by 20–30%.
- To ensure community engagement and long-term sustainability, governments and NGOs have introduced:
- Financial incentives,
- Training and capacity building,
- Market linkages for forest-based products.
- These steps foster a sense of ownership and responsibility among local communities.
Challenges and the Way Forward
- Despite these benefits, afforestation faces several challenges. A key issue is the rising cost of carbon credits. In 2023, the average price of carbon credits under the EU Emissions Trading System was €83 per tonne of CO₂. For Indian businesses, domestic afforestation provides a far more cost-effective alternative than purchasing expensive international credits.
- However, India still lacks a robust carbon trading framework. To fully leverage global carbon markets, the country must:
- Establish a transparent national carbon credit registry,
- Create a regulatory structure under Article 6 of the Paris Agreement,
- Offer financial incentives to encourage private investment in afforestation.
