Compensatory afforestation
Topic: Environment and Sustainable Development · NCERT: Beyond NCERT
Meaning
Compensatory afforestation is a legal rule in India. When forest land is diverted to non-forest use, such as a mine, dam or road, the user must grow new forest. It must be planted on an equal area of non-forest or degraded land. The money is managed by CAMPA under the Compensatory Afforestation Fund Act 2016. The aim is to replace the lost green cover.
Example
Suppose a highway project takes 100 hectares of forest. The project agency must pay to raise forest on 100 hectares of non-forest or degraded land elsewhere. It must also pay the net present value (NPV) of the forest it destroyed.
Don't confuse with
- Net present value (NPV) of forests: this is a separate charge, paid in addition. It is the money value of ecosystem services lost when the old forest is cut. Compensatory afforestation pays for planting new trees.
Related concepts
- Chipko and Appiko movements
- Development-induced displacement
- Environmental impact assessment
- Net present value of forests
- Green credit
- Biodiversity offset
- Biodiversity credits
- REDD+
- Nature-based solutions
- Polluter pays principle