Thiruvananthapuram: In a bold step towards combating climate change and achieving carbon neutrality, the Kerala Forest Department has unveiled a visionary initiative titled ‘Tree Banking’. This groundbreaking program seeks to expand the state’s green cover beyond its traditional forest regions by encouraging farmers to cultivate trees on private land turning ecological responsibility into a sustainable financial opportunity.
The Tree Banking project reimagines tree cultivation as a long-term investment, offering farmers financial support in the form of annuity-based loans. These loans are designed to be repaid only when the trees are harvested, typically after a period of 15 years. Unlike conventional subsidies, this model turns trees into a form of living collateral an asset that grows in value and ecological benefit over time. Starting from the third year of planting, farmers become eligible for incentive payments, providing continued motivation to nurture and maintain the trees.
Participation in the program is open to those who own land or hold it on lease for at least 15 years, ensuring long-term commitment to tree care and environmental stewardship. Upon maturity, the trees can be harvested either for personal use or for sale, but only with permission from the Social Forestry Division, maintaining a controlled and responsible felling system that prioritizes sustainability.
The Forest Department has carefully curated a selection of native and commercially valuable tree species to be included in the program. Among these are teak, rosewood, sandalwood, mahogany, anjili, kumbil, thambakam, ventek, karimaruth, wild plav, and jackfruit trees (plav). In the initial phase of the project, sandalwood has been given particular prominence due to its high market value and export potential. By promoting indigenous species, the project not only enhances biodiversity but also protects Kerala’s ecological heritage.
Tree Banking is more than an afforestation scheme it is a powerful tool for climate adaptation and carbon mitigation. By integrating tree farming into private agricultural landscapes, the project promotes agroforestry models that support both biodiversity and rural livelihoods. It represents a symbiotic approach where economic growth and environmental conservation go hand in hand.
Beyond the direct financial incentives, the program also opens up avenues for farmers to benefit from the emerging carbon credit market. As trees absorb carbon dioxide from the atmosphere, participants will become eligible for carbon credits, which can be monetized. This innovative aspect of the project positions farmers as contributors to global climate solutions while generating additional income at the local level.
By enabling a shift in mindset from trees as burdens to trees as assets the Tree Banking project transforms Kerala’s climate policy into a grassroots movement. It not only empowers farmers to take part in environmental preservation but also helps reduce the state’s dependency on imported timber, ensuring a steady local supply of quality wood.
The Forest Department’s initiative is a model of how environmental sustainability can be driven through inclusive economic participation. It reflects a future-focused strategy where private landholders are not just passive beneficiaries of climate action, but active stakeholders in building a carbon-neutral Kerala. In the face of accelerating climate threats, Tree Banking emerges as a timely and transformative solution, deeply rooted in Kerala’s soil, culture, and vision for sustainable development.