Sustainable farming: The key to unlocking India’s carbon credit potential

India, with its vast agricultural landscape and diverse agroclimatic zones, is uniquely positioned to play a central role in the global carbon credit revolution. As nations worldwide race to mitigate the impact of climate change, carbon credits — tradable permits that represent reduced greenhouse gas emissions — are becoming increasingly valuable. India can not only contribute significantly to global decarbonization efforts but also tap into considerable financial opportunities by leveraging its agricultural potential.

Agriculture’s role in carbon sequestration

Agriculture contributes 18 per cent of India’s GDP and employs approximately 54 per cent of its population, making it the backbone of the Indian economy. However, it is both highly vulnerable to climate change and one of its significant contributors.

Agriculture accounts for annual emissions of 400 million tCO2e, with rice cultivation alone responsible for 17.5 per cent of these emissions. Despite the challenges, agriculture presents immense potential for carbon sequestration—capturing and storing carbon dioxide from the atmosphere.

By adopting sustainable farming techniques, such as conservation tillage, agroforestry, and nutrient management, carbon sequestration can be enhanced, leading to a balance between emissions and carbon capture and generating valuable carbon credits in the process.

Encouraging the restoration of soil organic carbon through financial incentives could drive this transition, benefiting both the environment and farmers.

Agroclimatic zones and crop selection

India’s varied agroclimatic zones, from the arid deserts of Rajasthan to the humid coastal regions of Kerala, offer a diverse range of opportunities for carbon-friendly farming. These zones allow for crop diversification and the implementation of region-specific, sustainable practices.

For instance, in regions with suitable rainfall and soil conditions, agroforestry — growing trees alongside crops — can be highly effective in sequestering carbon. This practice not only improves soil quality but also provides additional revenue streams through the sale of carbon credits.

In areas facing extreme climatic conditions, like Gujarat’s Beed district, large-scale carbon projects are being explored. A Verra-registered project there has the potential to generate 675,280 Emission Reduction Certificates over a 15-20 year period while simultaneously addressing long-standing issues such as soil degradation and drought.

Commercial cropping for carbon credits

Commercial crops, including cotton, sugarcane, and oilseeds, offer significant potential for carbon sequestration when grown sustainably. By adopting practices such as crop rotation, cover cropping, and reduced tillage, farmers can increase carbon capture while also reaping financial benefits from the sale of carbon credits.

The Indian government’s push to incentivize sustainable practices, including the Ministry of Agriculture’s initiatives on land management and agroforestry, shows a commitment to supporting carbon-friendly agriculture.

For example, The National Innovations in Climate Resilient Agriculture Initiative (NICRA) has piloted a carbon-neutral village, showcasing how sustainable practices can reduce emissions while benefiting local economies. Similarly, the Indian Council of Agricultural Research (ICAR) has developed a programme to train farmers in carbon farming, creating a pool of talent to lead future sustainable farming initiatives.

India’s potential in the global carbon credit market

The global carbon credit market is expanding rapidly, driven by corporate sustainability programs and increasing regulatory pressure. With its large agricultural sector and growing economy, India is well-positioned to become a major player in this market.

The creation of a framework for voluntary carbon markets in the agriculture sector, initiated by the Ministry of Agriculture and Farmers Welfare, is a step in the right direction. This framework aims to standardise carbon credit projects and ensure their credibility while providing financial and technical support to farmers.

In addition, the Accreditation Protocol of Agroforestry Nurseries ensures the availability of high-quality planting material, crucial for large-scale implementation of agroforestry projects. By strengthening institutional arrangements for certification and planting, India can facilitate large-scale carbon sequestration projects that benefit both the environment and rural livelihoods.

Challenges and opportunities

Despite its potential, India’s agriculture sector faces several challenges in realizing the full benefits of carbon credits. These include inadequate infrastructure, limited financial access for small-scale farmers, and a lack of capacity development in carbon farming. Ensuring the environmental integrity of carbon credit projects is also essential for maintaining public trust and credibility in the market.

However, these challenges present opportunities for innovation. By investing in research and development, fostering partnerships between farmers, businesses, and governments, and supporting sustainable farming practices, India can overcome these obstacles and position itself as a global leader in carbon-friendly agriculture.

Conclusion

As the world transitions to a low-carbon economy, India’s agricultural sector holds the potential to be a key driver in the carbon credit revolution. With its diverse agroclimatic zones, the promotion of commercial cropping, and the adoption of sustainable practices, India can not only enhance food security and improve rural livelihoods but also generate significant carbon credits.

By continuing to invest in sustainable agriculture and building a robust carbon credit market, India can secure both economic gains and a more sustainable future for the planet.

The author is Founder, Creduce