While the prospect of carbon farming companies in India is a very interesting one, the industry is at a stage of infancy. The potential is certainly vast, but it is by no means fully underway.
The Intergovernmental Panel on Climate Change (IPCC) compiled a report surrounding the environmental factors that can have disastrous consequences on Indian agriculture.
This has led to initiatives such as GrowIndigo India Ltd, and the Indian Agricultural Research Institute (IARI) embarking on a collaborative effort that allows farmers to trade in carbon credits.
Though carbon farming companies in India have not yet fully realized their potential, the pace of growth is quite impressive. For example, between April 2020 and April 2022, quite a number of private players stepped up to the plate.
In fact, India’s carbon trading market ranks second globally where transacted volumes are concerned. That’s because it has generated 30 million carbon credits. Furthermore, considering that it is the third largest carbon emitter with 2.4 billion metric tons to its name, 25% of which the agricultural sector is responsible for, it’s the perfect candidate.
Indigo Ag and GrowIndigo are also working together with Punjab farmers to have them earn carbon credits. The farmers will do so by aiding in sequestering carbon.
Currently, there is also an effort to begin sensitizing small-scale farmers about the potential advantages of carbon farming. This is one of the most important factors if the carbon trading sector is meant to grow. Currently, the view is that more direct intervention from the government is essential in mobilizing the necessary change.
Nurture Farms was the first company to ever forward sell carbon credits that were agriculturally based in the country following a successful generation.
Carbon farming companies in India are in an industry that is nascent at best. Nevertheless, they have exhibited a ton of growth potential. It’s believed that direct intervention of the government is necessary to help push things forward, especially where sensitizing efforts to the benefits of carbon trading are concerned.
