India to Establish Domestic Carbon Market Regulations

Agriculture in carbon credit fold

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The Indian farmer will now be a part of the carbon credit ecosystem. Thus, the Indian agriculture sector is stepping up efforts toward sustenance through sustainability.  

The Union Minister of Agriculture & Farmers’ Welfare and Tribal Affairs, Arjun Munda, recently launched the Framework for Voluntary Carbon Market in the Agriculture Sector and Accreditation Protocol of Agroforestry Nurseries. 

Carbon trading in the agricultural sector involves buying and selling carbon credits generated by practices that reduce greenhouse gas emissions or increase carbon sequestration. 

Carbon credits are used to offset CO2 emissions under the Cap-and-Trade guidelines set by the Paris Agreement. Farmers can participate in carbon credit schemes by adopting practices like no-tillage farming, precision nitrogen use, cover crop planting, agroforestry, soil organic carbon management, and livestock and manure management.

The agriculture sector is vital to the economy and livelihoods of millions, employing 54.6% of the country’s workforce.

The announcement is a welcome step in the Indian agriculture sector, which is stepping up efforts toward sustenance through sustainability. It has a two-pronged approach:

  • The framework aims to encourage small and medium farmers to avail of carbon credit benefits, accelerating the adoption of environment-friendly agricultural practices. 
  • The Accreditation Protocol of Agroforestry Nurseries will strengthen institutional arrangements for large-scale production and certification of planting material to promote agroforestry in the country.
Carbon credit and the Indian farmer:

India’s agriculture sector has over 40 carbon credit projects, with pilot programs paying $10-30 per acre per year, according to various studies. By mid-2023, hundreds of farmers could receive payments for climate-friendly practices.

One project that immediately comes to mind is Boomitra. A project enrolling 100,000 farmers across 300,000 acres, Boomitra, has sold millions of dollars worth of soil carbon credits to companies aiming to reduce their carbon footprint.

Similarly, hundreds of Indian farmers could receive payments for carbon credits issued for implementing climate-friendly practices that reduce carbon emissions. 

Carbon farming improves soil health and reduces GHG emissions, contributing to climate change mitigation. It involves science-based techniques like cover crops, optimized tillage, and fertilizer management. Regenerative farming methods, based on traditional farming methods, reduce soil disturbance, end synthetic pesticides, maximize soil coverage, promote crop rotation, and combine livestock rearing with crops. These methods are applied to degraded lands.

Agriculture and carbon emissions: 

Globally, agriculture is historically linked with emissions. 

In India, various studies estimate that agriculture in the country contributes 14% of total GHG emissions, with 54.6% due to enteric fermentation, 17.5% from rice cultivation, 19.1% from fertilizer, 6.7% from manure management, and 2.2% from field burning of agricultural residues. The impact of climate change rises to extreme standards in North India, especially during the winter. 

The Central government, local governance bodies, and global agencies are making a concentrated effort to stymie the impact of carbon emissions on the planet and the livelihoods of the medium and small farmers who form a major chunk of the agriculture segment. 

Center-state-local-global collaborations:

As a result of the collaborative efforts, the Indian agriculture sector is leaning toward sustainable farming practices. IFFOs and Agtech companies are championing the cause of regenerative farming methods. 

Some of the methods include:

  • Combining livestock rearing with crops and other plants.
  • Maximizing soil coverage through living roots and mulching
  • Promoting crop rotation and improving biodiversity
  • Reducing soil disturbance due to tillage
  • Using mob grazing and manure/compost to minimize the use of synthetic pesticides and fertilizers
End-note:

The agriculture sector in India is undergoing a sea change. The critical aspect is the beneficiaries are directly involved in the process and the resultant change. Although it will take a while for the impact to be visible, I believe that INDIA is being prepared to embrace a new, tech-driven, organic, and inclusive farming activity. 

At WriteCanvas, we are of the view that the hands that feed us should have equal access to quality and natural yield on their dinner table! 

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