Since 1992, the Tibetan Settlement Office (TSO) has taken a keen interest in the local environment, which was being spoiled by indiscriminate dumping of wastes in the area. In June 1994, TSO voluntarily started a waste collection and recycling programme called " Clean Upper Dharamsala Project (CUDP)". This programme consists of collecting recyclable and non-recyclable wastes from hotels, shops, offices, schools and homes which are sorted and then recycled elsewhere in Punjab State.
In 2007 the CUDP has been improved by the Environmental Education Project .

Since 2002, Tibetan Settlement Office received a sanitation contract from the Municipal Council, Dharamsala for cleaning the market areas of the municipality jurisdiction in Upper Dharamsala, which was previously done by private party. Our program now operates on a daily basis. The Tibetan Settlement Office now acquired three garbage disposal trucks and employs 9 full-time green workers and 15 daily wage workers.

The Tibetan Settlement Office set up a handmade paper recycling workshop in McLeod Ganj.  Here, waste papers are recycled into handmade recycled paper, which is then used in making notebooks, letter pads, photo albums and office folders etc.  This workshop provides jobs for a total of 13 people.

The other part of the environmental programme is to create awareness and educate the public about environmental issues.  Therefore, the Tibetan Welfare Office set up an Environmental Education Center in McLeod Ganj to achieve these goals.  The programme includes conducting environmental classes in the center and visiting the schools, door to door distribution of leaflets and letters, organization of lectures, writing articles in the office newsletter and putting up posters, bills and installing signboards on environmental related issues in the town.

To promote environmental awareness in the community, and to become financially independent, the Tibetan Settlement Office established a Green Shop . Besides a range of eco-friendly products, the Green Shop sells pre-boiled and filtered water to tourists in order to prevent excessive use of plastic bottles.

The public sanitation situation in McLeod Ganj has also improved greatly during the past few years, mainly due to garbage collection, proper waste disposal and recycling programmes initiated by Tibetan Settlement Office . Many of the toilets and drainage projects in Upper Dharamsala were directed by the Tibetan Settlement Office .

As unmonitored development contributes to the deterioration of the environment in Upper Dharamsala, Tibetan Settlement Office initiated a Tree Plantation Programme during the annual Environment and Earth Day, and His Holiness the Dalai Lama's birthday. From time to time, Tibetan Welfare Office urges public to plant trees. Additionally, an annual Flower Exhibition is organized to promote horticulture in the community. Tibetan Settlement Office constructed a small garden at the crossing road near the main Tibetan Temple, McLeod Ganj.