The relentless march of climate change, a stark reality evident in every passing year, has ignited a global call to action. India, recognizing the gravity of the situation, has been at the forefront of environmental stewardship. Landmark legislation, such as the Water (Prevention and Control of Pollution) Act, 1974 to the Environment Protection Act, 1986, laid the groundwork for a cleaner, greener nation.
But India is not merely content with legislation. It is pioneering new frontiers in environmental economics. Uttarakhand, a state renowned for its pristine natural beauty, has taken a bold step forward by introducing the Gross Environment Product (GEP). By assigning financial value to its natural resources– air, water, soil, and forests – Uttarakhand is embarking on a groundbreaking experiment. This innovative approach is a testament to India's commitment to not just conserving nature, but also recognizing its intrinsic worth.
The ultimate goal of implementing the Gross Environment Product (GEP) is to transition towards a Green Gross Domestic Product (Green GDP). Unlike traditional GDP, which solely measures economic output, Green GDP incorporates environmental factors. By accounting for biodiversity loss and the costs of climate change, Green GDP provides a more holistic picture of a nation's economic health and sustainability. It signifies a paradigm shift, recognizing that economic prosperity cannot be achieved at the expense of the environment.
Need For Gross Environment Product in Uttarakhand
The State of Uttarakhand is one that offers an abundance of ecosystem services; nevertheless, as a consequence of the fact that these services are ongoing, there is a natural decline in the quality of those services.
The State of Uttarakhand provides the nation with services to the extent of Rs 95,112 crore annually, thanks to the biodiversity that it possesses.
Over seventy-one percent of the state is covered by forests. Uttarakhand is home to the Himalayas, the wildlife reserves such as the Corbett and Rajaji Tiger Reserves, in addition, it is the same place where rivers such as the Ganga, Yamuna, and Sharada originated from.
The Central Government emphasized on the incorporation of ecosystem services (direct and indirect contributions ecosystems provide for human wellbeing and quality of life) of the states in the national accounting.
The State of Uttarakhand has been allotted Rs. 51 crores per annum for five years as Green Bonus to spend on its Forest.
Potential Advantages of Introducing GEP
Evaluation of the Ecosystem Services is of great value, when it comes to the determination of Green Gross Environment Product.
In the context of eco-compensation and public financial transfers, GEP can serve as a scientific foundation for use.
It can be effectively used to assess the current state of ecosystem services, that will help the state to determine the Sustainable Development Goals Mapping and its attainment.
In addition to this, it is an essential indication for keeping track of the development of eco-civilization. There is a possibility that GEP will help determine the pressure humans put on the natural resources.
While the introduction of Gross Environment Product (GEP) is a commendable step towards a sustainable future, it presents numerous challenges. Monetizing ecosystem services to measure GDP could potentially confuse policymakers and undermine past conservation efforts. Questions about GEP's transparency persist (Does it simply assess the state’s ecological wealth, or does it determine the percentage of GDP, the ecosystem services contribute to).
Only through effective implementation can we fully assess the GEP's impact and determine its effectiveness as a measure of environmental well-being. What do you think of this new initiative? Let me know in the comment box.
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