Over ₹2.9 crore were disbursed to 2,550 smallholder farmers for carbon credits under the ‘Aadi’ programme (launched 2019 by Grow Indigo and ICAR).

• Between 2019 and 2022, farmers reduced greenhouse gases and PM2.5 while increasing soil carbon by adopting practices such as Direct Seeded Rice (DSR), reduced tillage, and crop residue management.

What is an Agri-Carbon Market?

• An agricultural carbon market is a system that buys and sells carbon credits generated from farming practices that either reduce greenhouse gas (GHG) emissions or store/sequester carbon in agricultural soils and biomass.
  • One carbon credit represents a verified reduction (under the Verra VM0042 methodology), avoidance, or removal equivalent to one tonne of carbon dioxide equivalent.

Significance of Agri-Carbon Market in India

• Addressing High Agricultural Emissions: Agriculture accounts for about 14% of India’s total GHG emissions, primarily from livestock (53%), fertilizer, rice cultivation, and crop residue burning.
• Soil Conservation: Carbon markets provide financial incentives to rehabilitate 26 million hectares of degraded land by 2030 (under the Bonn Challenge) and conserve groundwater.
• Supplementing Smallholder Incomes: Carbon payments provide direct additional revenue while building climate resilience, overcoming adoption barriers for small farmers.