New Opportunities for Farmers in Carbon Credit Trading within the Agricultural Sector

The Ministry of Agriculture and Farmers Welfare has made a significant decision to promote carbon credit trading in the agricultural sector. In December 2023, the government launched a carbon credit trading scheme providing new opportunities for farmers. Under this scheme, organizations and farmers can register greenhouse gas (GHG) projects to receive carbon credit certificates.

What is Carbon Credit Trading:

Carbon credit trading is an international initiative to control carbon emissions by regulating a country's carbon footprint. This system is designed to reduce emissions of carbon dioxide and other greenhouse gases. Projects operate by selling carbon credits and are independently audited to verify the tons of carbon emissions saved or reduced.

How Do Carbon Credits Work:

Using carbon credits enables significant financial flows to decarbonization projects worldwide, which are essential for reducing greenhouse gas emissions. A carbon credit represents the right to emit one ton of carbon dioxide or an equivalent amount of other greenhouse gases. According to the Environmental Defense Fund, one ton of carbon dioxide emissions is roughly equivalent to driving 2,400 miles.

Benefits for Small and Marginal Farmers: The Ministry of Agriculture and Farmers Welfare has established a voluntary carbon market (VCM) to benefit and encourage small and marginal farmers. This initiative aims to increase farmers' income and accelerate the adoption of environmentally friendly agricultural practices. By adopting sustainable farming practices, farmers can earn additional income from carbon credits. Additionally, they will benefit from improved natural capital, such as soil, water, and biodiversity.

Main Objectives of the VCM: The primary objectives of the VCM are to raise stakeholder awareness, build their capacity, and motivate farmers to adopt sustainable agricultural practices. This initiative will contribute to sustainable development goals, support rural livelihoods, and enhance resilience in agriculture. Union Minister of Agriculture and Farmers Welfare, Shri Shivraj Singh Chouhan, shared this information in the Rajya Sabha.