GS Paper III

News Excerpt

The Ministry of Agriculture and Farmers' Welfare launched the ‘Framework for Voluntary Carbon Market in Agriculture Sector and Accreditation Protocol of Agroforestry Nurseries’.

More detail about the news:

• The Accreditation Protocol of Agroforestry Nurseries will strengthen the institutional arrangements for production and certification of planting material on a large scale to promote agroforestry in the country.
•  All the stakeholders have been directed by the Ministry to adopt it so that quality planting material can provide assured returns and the objectives and goals of the National Agroforestry Policy can be achieved.
• The government asked the Indian Institute of Agricultural Research (ICAR) to play an active role in this direction.
• The Ministry of Agriculture and Farmers' Welfare also urged cooperation from the related ministries of the Centre and the states and other organizations to promote the carbon market in the interest of farmers. 

Need for voluntary carbon markets in agriculture

• Financial incentive for farmers: Carbon credits provide an additional income stream for farmers who adopt sustainable agricultural practices, incentivizing them to mitigate climate change.
•  Promotion of sustainable practices: The concept encourages the adoption of environmentally friendly agricultural practices such as no-till farming, balanced livestock feed, and integrated nutrient management, contributing to sustainable agriculture.
• Contribution to climate change mitigation: By rewarding farmers for reducing or removing carbon from the atmosphere, carbon credits actively contribute to global efforts in mitigating climate change.
• Alignment with National Policies: The initiative aligns with the Government's Green Credit Scheme, emphasising the importance of integrating eco-friendly practices into the agricultural sector for long-term environmental and economic benefits.
• To achieve net zero target:  Carbon markets can play a very critical role in India’s journey to achieve its net zero and decarbonization goals as well as in catalyzing key sectors such as agriculture, forestry, etc.

Challenges with voluntary carbon markets in agriculture

•  Lack of Robust Monitoring: The voluntary carbon market in India faces challenges related to insufficient monitoring mechanisms, hindering the accurate assessment of emission reductions and the overall impact of sustainable agricultural practices.
•    Overestimation of Emission Reduction: In 2023, an investigation by the Centre for Science and Environment revealed a tendency to overestimate emission reductions. This challenges the credibility of carbon credits as an effective measure in mitigating climate change, leading to concerns about the accuracy of the system.
•  Ownership Issues: The investigation highlights problems with the ownership of carbon credits, indicating a lack of clarity and accountability in the distribution and utilisation of credits.
• Implementation Shortcomings: The survey by, a non-profit research-for-development organisation, CIMMYT identified implementation challenges such as insufficient training in sustainable agricultural practices, a lack of follow-up from companies after enrollment, and non-receipt of promised payments. These factors contribute to discontinuation of sustainable practices.
•  Awareness and Education: There is a lack of awareness among farmers about the contract terms and the benefits of participating in carbon credit projects.

Recent measures by the government

• The Energy Conservation (Amendment) Act, 2022, has been enacted in India to develop domestic carbon markets, avoid carbon debt risks, and position the country as the world’s largest exporter of carbon credits.
• This initiative can promote the adoption of sustainable farming practices, establish a regulated ecosystem for voluntary carbon markets, and ultimately enhance agricultural output, farmer income, and environmental sustainability.
• In line with these efforts, the Uttar Pradesh Government initiated an agroforestry project in collaboration with The Energy and Resource Institute (TERI) in April 2023.
• The project aims to integrate nature-based systems into agriculture, leveraging carbon sequestration to mitigate climate change and generate additional income opportunities for farmers.

Way forward:

• Stakeholder collaboration: Foster collaboration among central and state ministries, organisations, and farmers to create a unified and cooperative ecosystem, essential for the success of voluntary carbon markets.
•  Technology Integration for MRV: Develop and implement scalable technological solutions for Measurement, Reporting, and Verification (MRV) to enhance accuracy, streamline processes, and facilitate efficient tracking of carbon credits.
• Clear Ownership Framework: Design transparent mechanisms for ownership and distribution of carbon credits, addressing issues highlighted in the investigation, and ensuring fair compensation for farmers.
•  Financial Support and Training: Provide upfront payments to farmers for carbon credits sold to address concerns about non-receipt of payments. Also, offer training programs and support for sustainable practices, strengthening the foundation for successful implementation.

Mains PYQ

Q. Should the pursuit of carbon credits and clean development mechanisms set up under UNFCCC be maintained even though there has been a massive slide in the value of a carbon credit? Discuss with respect to India’s energy needs for economic growth. (UPSC 2014)