{"id":25180,"date":"2022-09-20T12:19:08","date_gmt":"2022-09-20T06:49:08","guid":{"rendered":"https:\/\/idronline.org\/?post_type=article&p=25180"},"modified":"2026-01-14T23:43:14","modified_gmt":"2026-01-14T18:13:14","slug":"monetising-carbon-credits-how-indian-farmers-can-benefit","status":"publish","type":"article","link":"https:\/\/idronline.org\/kn-in\/article\/agriculture\/monetising-carbon-credits-how-indian-farmers-can-benefit\/","title":{"rendered":"Monetising carbon credits: How Indian farmers can benefit"},"content":{"rendered":"

The Energy Conservation (Amendment) Bill, 2022<\/a>, which was introduced and passed in the Lok Sabha on August 8, incorporated the aim of developing the domestic carbon market. While the bill focuses on the renewable energy industry, it can indirectly<\/a> benefit the country’s farmers as well.1<\/a><\/sup><\/p>

Approximately 55 percent<\/a> of India’s population is employed in agriculture. Given its dependence on natural resources such as soil and water, agriculture is significantly impacted by the climate crisis and its accompanying effects including land degradation, market volatility in prices, and rising input costs. This affects the sustainability of agricultural production and the livelihoods of those dependent on it.<\/p>

Improving soil health is critical<\/h3>

The intensive application of fertilisers and pesticides since the Green Revolution has depleted<\/a> soil carbon levels and consequently degraded the soil. Various estimates<\/a> suggest that up to 30 percent of India’s total geographical land area has degraded—almost half of this land constitutes agricultural land, particularly unirrigated\/rainfed agricultural land.<\/p>

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Soil comprises organic matter that consists of elements such as carbon, nitrogen, and phosphorus. Approximately 50 percent<\/a> of soil organic matter is made up of carbon. Thus, soil carbon measurement provides a good indication of overall soil health.<\/p>

In his 2017 paper<\/a>, Australian microbiologist and climatologist Walter Jehne said that the earth’s soil carbon sponge, which is formed by the mixture of mineral and organic detritus and air, has an enhanced capacity to absorb and retain rain, improves access to essential nutrients, and supports a diverse range of microbial processes. Therefore, when soil carbon levels drop, the ability of the soil to absorb and retain water also reduces. This constrains the effect of rainfall on the soil and leaves the topsoil prone to run-off and erosion, further leading to cycles of floods and droughts. Through carbon sequestration, we can increase soil carbon levels and reduce carbon dioxide levels, which acts as a dual benefit to climate change and agriculture.<\/p>

Soil carbon sequestration is a process by which the air’s carbon dioxide is extracted and stored in a soil carbon pool. During photosynthesis, plants break down carbon dioxideand water from the atmosphere into oxygen, sugar, and carbon-rich compounds. These reach the roots and the soil underneath and nourish the organisms below the soil.<\/p>

The reduction of biomass below the soil, increased soil erosion, and higher tilling causes a higher percentage of carbon dioxide to be released back into the air, which leaves the soil with reduced carbon content.<\/p>

There are practices that farmers can follow to restore soil health<\/h3>

Techniques that increase biomass and reduce the loss of carbon from soil must be adopted in order to improve soil health. These regenerative agriculture practices include:<\/p>

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