The government has taken a significant step towards promoting sustainable agriculture by launching the Carbon Credit Trading Scheme. The Union Minister for Agriculture and Farmers’ Welfare, Shivraj Singh Chouhan, shared this information in a written reply to the Rajya Sabha on July 26, 2024. Notified in December 2023, the scheme introduces a carbon trading mechanism, with the agriculture sector being one of the selected participants.
The scheme allows entities and farmers to register greenhouse gas (GHG) mitigation projects, earning carbon credit certificates that comply with approved methodologies. A single carbon credit represents the removal or avoided emission of one ton of carbon dioxide or another greenhouse gas, such as methane, of equivalent volume.
These credits can be sold to entities seeking to offset their own emissions. For instance, a farmer who plants a tree that can theoretically remove one ton of carbon dioxide from the atmosphere can sell the corresponding carbon credit to a steel company, which can then reduce its "net" emissions by that amount.
This initiative is part of the Ministry of Agriculture & Farmers Welfare's broader effort to establish a framework for a Voluntary Carbon Market (VCM) within the agricultural sector. The VCM aims to benefit small and marginal farmers by providing them with carbon credit advantages.
Farmers are encouraged to adopt eco-friendly methods, which not only boost their income through carbon credits but also enhance the natural capital, including soil, water, and biodiversity by integrating carbon markets into agricultural practices.
The VCM framework is designed to raise awareness and build capacity among stakeholders, motivating farmers to embrace sustainable practices. In the long term, this initiative is expected to contribute to sustainable development goals, support rural livelihoods, and foster resilience in agriculture.
The framework for voluntary carbon markets aims to promote a greener and more prosperous future for the farming community by incentivizing and financing sustainable agricultural practices.
