India, home to 18% of the world’s population, holds only 4% of its groundwater, which is being extracted at an alarming rate. Over the past 70 years, per capita groundwater availability has declined by 25%. A 2021 Comptroller and Auditor General report warns that if extraction surpasses recharge rates, 80% of drinking water supplies will be affected.
Agriculture accounts for 87% of groundwater extraction, with the remaining 13% used for domestic and industrial purposes. According to Niti Aayog, Indian farming consumes two to three times more water per tonne of crop than developed nations. Ageing irrigation infrastructure, with most dams built before 1990 operating at less than 50% of their storage capacity, further aggravates groundwater reliance.
The country faces challenges from water-intensive crops, inefficient irrigation, leaky distribution networks, and inadequate wastewater treatment. Rapid industrialisation and urbanisation have worsened water pollution, contaminating rivers and groundwater. The absence of an integrated national water policy further compounds the issue.
To address India’s water crisis, innovative solutions beyond traditional conservation methods are essential. The government’s Mission LiFE (Lifestyle for Environment) proposes a green credit programme modelled after carbon credits, incentivising environmental initiatives. This programme enables individuals, farmer organisations, cooperatives, and enterprises to earn and trade green credits.
A focus area of Mission LiFE is water green credits, to promote water conservation, rainwater harvesting, efficient usage, and wastewater treatment. The principle is that every water-consuming entity should optimise its use and be rewarded for improvements. Savings from baseline consumption levels can be converted into tradable water green credit units, which can be purchased by entities exceeding their water usage obligations. This market-driven mechanism mirrors carbon credit systems and encourages efficiency, restoration, and economic alignment with ecological responsibility.
A robust framework is essential for effective adoption and implementation of water green credits. This includes defining baselines of water footprint, establishing measurement and verification standards, and creating a marketplace for credit trading. Reward levels for conservation efforts should factor in regional conditions such as rainfall patterns, groundwater quality, and scarcity levels. Determining its economic and ecological worth is just the first step in rationalising water use. Pricing mechanisms must balance cost recovery, social equity, and conservation incentives. Government bodies, agricultural associations, and water management agencies must play a pivotal role in aligning this framework with local conditions.
Bisleri, in collaboration with the Teri School of Advanced Studies, has pioneered a water green credit model for the beverage industry. This study examined global water trading practices and developed a framework for estimating the water footprint of a business — from raw materials to final product delivery to consumer. It emphasised the need for businesses to have end-to-end accountability on water consumption, and factoring localised conservation efforts and supply chain optimisation.
A broader approach extending beyond industrial water use to agriculture and ecosystem preservation is necessary for a larger impact. Water scarcity in agriculture threatens crop yields, food security, and farmer livelihoods. Micro-irrigation and precision technologies can reduce irrigation costs by 50%, conserve water by 45%, and increase yields by 114% compared to traditional methods.
Water green credits can help in promoting efficient practices such as the system of rice intensification, micro-irrigation, and drip irrigation. Educating farmers on optimal irrigation, based on soil moisture monitoring, can prevent overwatering. However, successful implementation requires capacity building and financial support, particularly for small farmers with fragmented landholdings.
Beyond agriculture, water conservation can be promoted through rainwater harvesting for non-potable uses, greywater recycling for irrigation or toilet flushing, and leak detection technologies like smart meters and acoustic sensors. Encouraging water-efficient appliances in homes and industries can further contribute to conservation.
Implementing water green credit programmes involves several key steps: One, establishing clear thresholds and benchmarks for credit generation and issuance; two, ensuring fungibility across sectors to allow flexibility and equivalence in conservation effort; three, integrating digital platforms for registration, issuance, and monitoring to enhance transparency and efficiency. International organisations and NGOs can provide expertise, funding, and advocacy to strengthen water credit systems.
The concept of water green credits offers a practical solution to combat water scarcity. This requires the support of collaboration among government bodies, agricultural communities, and private organisations. By fostering stakeholder dialogue and leveraging collective expertise, water green credits can drive sustainable agriculture, conserve resources, and secure water for future generations.
Angelo George is CEO, Bisleri International Pvt Ltd. The views expressed are personal
