Context: Agricultural carbon projects in India are increasingly being promoted to unlock new income opportunities for farmers while contributing to climate mitigation. However, concerns related to measurement accuracy, credibility of carbon credits, and benefit-sharing remain major constraints limiting wider participation.
What are Carbon Markets?
Carbon markets allow the buying and selling of carbon credits generated through emission-reduction or carbon-sequestration activities. They incentivise individuals, industries, and farmers to adopt low-carbon practices.
Significance of Carbon Markets in Agriculture
- Income Diversification
Climate-friendly practices—such as reduced tillage, agroforestry, and methane-reducing livestock solutions—enable farmers to earn carbon credits. India’s voluntary carbon credit potential is projected at US$20–40 billion by 2030. - Climate Mitigation
Agriculture contributes significantly to methane and nitrous oxide emissions. Improved soil practices boost soil organic carbon, supporting India’s climate commitments under the Paris Agreement. - Global Market Presence
India registered over 240 agri-food carbon projects under international standards by 2024, strengthening its role in the global voluntary carbon market.