Strengthening Farmers for a Sustainable Future
Climate change has posed a significant threat to agri-food systems, especially in highly vulnerable smallholder farming regions like India. While agriculture contributes about 16% of gross greenhouse gas (GHG) emissions in India, it is also a substantial sink for mitigating climate change through regenerative farming practices. However, the adoption of these practices has been slow due to capacity gaps and lack of incentives, despite such conservation agriculture practices being promoted by many research organizations. Linking smallholder farmers to carbon marketplace will lead to a pull to adopt regenerative farming practices, leading to additional income and co-benefits for farmers. With a cash incentive, the smallholder farmers will adopt these regenerative practices and make agriculture a solution for GHG mitigation.
How It Works?
Get paid for the Regenerative Agriculture practices that you adopt to mitigate Greenhouse Gases.
Sign-up for the program
Receive agronomic advice from our experts
Implement regenerative agriculture practices like Reduced Tillage, Dry/Direct Seeding of Rice etc
Get paid via Carbon Credits
How do Farmers Benefit?
Good Soil Health
Water Use Efficiency
Sustainable Food & Fiber
Frequently asked Questions
What is Carbon Marketplace?
The word 'Carbon' in 'Carbon Marketplace' refers to carbon dioxide (CO 2 ) - the most common greenhouse gas (GHG). Carbon marketplaces enable reducing carbon emissions by paying for a carbon credit that a separate party has sequestered.
A carbon credit is a digital certificate generated after rigorous monitoring and verification of the adopted regenerative practices. Linkage of agriculture to carbon markets can provide a new source of income for farmers who implement such practices that reduce GHG emissions or sequester (retain) carbon. Important buyers of the carbon credits are private firms and NGOs seeking to voluntarily contribute to sustainable development.
Are all carbon credits equal?
No. The price of carbon credits depends on their quality. A high-quality carbon credit is real, additional, transparent, measurable, and permanent. Rigorous monitoring and verification must also ensure there is no leakage from carbon projects and the credits are not double counted. Additional co-benefits to society and biodiversity also add to the value of carbon credits.
Who will verify the credits?
According to standards, the carbon credit generated is to be validated and verified by globally recognized third party agencies.
What is in it for the farmers?
This program enables farmers to participate in the voluntary carbon markets to earn additional income from adopting regenerative agricultural practices. The program will also provide the farmers with technical information and digital tools to make informed decisions.
How much will the farmers be paid? Will they be charged any fees?
Carbon credits are freely traded on a marketplace, and their price varies with supply and demand. Typically, the price ranges from $10-15 per ton of CO 2 -equivalent. For example, if a farmer with 3 ha land earns 2 carbon credits per ha, the potential income would be up to ₹ 6,750. A nominal fee may be deducted from the carbon credit payments to the farmer to cover the cost of running the program.
All this sounds too complex for a farmer to understand.
Yes, we understand. By making it simple to register, monitor, verify, and report the good agricultural practices, Grow Indigo would help the farmers to get started with generating carbon credits. These credits will result in additional income for the farmer - up to ₹ 3,000 per hectare (as per initial estimates if the farmer adopts a complete package of practices).
Will the farmers be locked into the contract?
Participation in the carbon marketplace is voluntary, but for farmers to benefit they will have to make a commitment for fixed number of years to continue to benefit from Carbon Credit payments.
It seems the carbon program will be attractive only to large holder farmers, as the know-how and technical expertise will not be affordable to the smallholder farmers?
No. Grow Indigo's technological innovation allows for small farms to group into a single project, hence delivering the benefits of economies of scale to smallholder farmers. The cost of monitoring is optimized by employing technology and statistical sampling methods.
Is the carbon marketplace a private entity?
Voluntary carbon markets pay farmers for carbon credits generated by the adoption of regenerative agricultural practices. All such marketplaces are privately-run schemes. This will be the first program of its kind in India that brings the benefits of a carbon marketplace to smallholder farmers at scale. Without impacting any existing government regulations, this program will provide additional income to participating farmers while also addressing climate change.
What are the expected outcomes from the program?
Expected outcomes from the program are as follows:
1. Improve farm profitability
2. Improve soil health
3. Reduce air pollution
4. Halt declining water tables
5. Improve environmental and human health