Which of the following statements about 'Green Credit Initiative' is/are correct? 1. It is a response to the challenge of climate change. 2. It promotes plantations on wasteland and river catchment areas. 3. It is a scheme of the Government of India to replace the kerosene oil with solar power used by the rural poor.

The Green Credit Initiative, launched by the Government of India and formally notified in October 2023 by the Ministry of Environment, Forest and Climate Change, is a market-based mechanism designed as a response to climate change challenges (Statement 1 correct). Under the initiative, plantations on degraded wasteland and river catchment areas are incentivised by issuing tradable green credits (Statement 2 correct). Statement 3 is incorrect because the scheme has nothing to do with replacing kerosene with solar power — that pertains to schemes like Saubhagya or KUSUM. Hence only statements 1 and 2 are correct.