AS speed in climate change, tree plantations and carbon sequences are essential for environmental stability. For India, it is important to expand a tree cover to reduce climate change, depending on a rapidly growing economy on carbon-intensive industries, supporting industrial growth and rural livelihood.
India’s forest and tree cover is 25.17%, much below the target set by the 1988 National Forest Policy. This deficiency has serious implications, as deforestation, rapid urbanization and industrial emissions degrad the ecosystem.
Familiarity in afforestation
Tree plantations act as natural carbon sinks, absorb atmospheric carbon dioxide (co₂). However, in India, this sequence capacity should be increased through large -scale afforestation programs. Beyond reducing greenhouse gas emissions, increase in tree cover improves soil health, groundwater recharges, maintains water, reduces soil erosion, and increases flexibility against extreme weather events.
Recognizing this, India has introduced several policies and initiatives to accelerate afforestation efforts. The National Agnrophacysture Policy (2014) and the India program in the forests outside the trees encourage private landlords, farmers and industries to participate in large -scale trees. They aim to reduce dependence on natural forests for wood and fuel, restore insulted ecosystems and provide additional income sources for rural communities.
Green India Mission plays an important role in revival of humiliated forests and promotes permanent forest management. According to government data, GIM has helped increase the forest cover 0.56% between 2017 and 2021.
The initiative of corporate social responsibility has also contributed to a large scale tree plantation drive. Companies in areas such as automobile manufacturing, cement and energy have worked as afforestation projects to offset emissions. Many corporations are also integrating afforestation efforts in their carbon credit strategies, allowing them to claim a decrease in emissions by restoring the ecosystem.
Indian industries face increasing pressure to reduce their carbon footprint due to tough international rules. The European Union’s carbon border adjustment mechanisms to be implemented in 2026 will impose tariffs on carbon-influence such as steel, cement and aluminum. Since trade between India and the European Union reached € 124 billion in 2023, these tariffs can greatly affect Indian exporters.
To remain competitive in global markets, industries are rapidly investing in carbon-offset projects, including large-scale tree gardens. Such investment helps companies to align with global stability standards, earn carbon credit under framework such as verified carbon standard and clean development mechanisms, and offset emissions in a cost effective manner rather than purchasing expensive international carbon credit.
Stability is no longer about regulatory compliance – it has become a strategic benefit. Companies are integrating their operations by developing green supply chains, sources of raw materials from permanent forestry projects and implementing energy-efficient manufacturing processes. Global capital markets should rapidly be suitable for maintaining their market status, in favor of environment, social and governance principles.
Trees also provide economic and social benefits. Large -scale afforestation initiatives create millions of jobs, especially in nursery management, forest conservation and agropores. These are particularly important for rural communities. Agropharystri, which integrates trees in agricultural systems, is a particularly promising approach. This nutrient increases soil fertility by improving cycling, provides extra income from wood, fruits and medicinal plants, and increases flexibility for dried and irregular weather conditions. A study by the Indian Council of Agriculture Research found that Agnrophacystry can increase the income of the farm by 20–30%.
To support the community-led afforestation, the government and non-governmental organizations have stepped up to provide financial incentives, training and capacity-making programs to educate farmers and rural workers, and market relations to help communities sell forest-based products. They promote a sense of responsibility and ownership.
Policy recommendations
Despite its benefits, a large -scale tree plantation faces many challenges. There is a rising cost of a carbon credit. In 2023, the average price of carbon credit under the Emission Trading System of the European Union was € 83 per tonnes. For Indian businesses, investing in afforestation provides more cost -effective solutions than purchasing expensive carbon credit from international markets. Another challenge is the absence of a strong carbon trading policy in India. To fully capitalize on global carbon markets, India must establish a transparent National Carbon Credit Registry, a well -defined regulatory structure under Article 6 of the Paris Agreement, and financial incentive to encourage private sector investment in afforestation.
As India attempts to obtain pure-zero emissions by 2070, tree plantation and carbon sequence will be the major pillars of its stability strategy. The risk of inactivity is very high.
BBL Madhukar, Chairman, Four School of Management, and Director General, BRICS Chamber of Commerce & Industry
Published – April 30, 2025 01:55 AM IST