While carbon markets are growing, there are issues of transparency on conditions by the agencies and farmers, long term impacts some of the technologies. without much studied about the environmental impact, operational management between the agencies when there are over lapping areas and people duead rush. while many of the solutions are useful, carbon financing can supplement the payments to far ers, some of the solutions are highly prescriptive and farmers are getting into the traps unknowinly. to discuss some of the issues DIAGEO India and @centre for Sustainable Agriculture are planning a meeting on 28th of May.
Three issues in the carbon market that need the attention of all stakeholders. Additionality: What is additionality? Project activities where emissions reductions are “additional to those that otherwise would occur” without project implementation. A carbon project is additional if the emissions reductions or removals would not have occurred without revenue from climate finance. What is the issue in the current carbon market regarding additionality? Several carbon credit companies are onboarding projects that do not follow the principle of additionality. For example, Rudiben (hypothetical) was already a regenerative cotton farmer, and Preet Singh had been using a happy seeder for five years to manage residue. Carbon firms collect their data for carbon credits. 2. Permanence: What is it? Permanence in carbon markets refers to the duration that sequestered or removed carbon remains stored out of the atmosphere, minimizing the risk of re-release. A farmer may adopt a regenerative, low-carbon method, such as AWD or direct seeding of rice, based on a one-time intervention by a carbon finance company. If the farmer faces losses, they may discontinue the practice in the second season. What is the issue with permanence? It is critical to ensure that carbon remains stored in the soil or avoided in the food system. A farmer may become an emitter again if they revert to conventional practices. 3. Equity: What is it? All farmers, small and large, women, lower caste groups, and native tribes, should be treated equally by the carbon market. Issue of inequity? Large farmers bring more land per person and therefore lower operational costs (e.g., onboarding and data management per farmer). As a result, companies tend to prefer large farmers. The market is not an equalizer here, as carbon markets are selective in onboarding farmers. The industry may argue that this is due to small landholdings, but has this challenge driven efforts to onboard farmer collectives? How can registries like Verra and Gold Standard ensure that these issues are addressed? I am looking for solutions to these challenges. What are your thoughts? Diageo is planning to host a workshop with the Centre for Sustainable Agriculture to discuss these issues on 28 May in Hyderabad. If your organisation is keen to join the discussion, please DM me. We can also arrange virtual participation. #carbonmarket #carboncredit #GoldStandard #Verra #regenerativeagriculture PS: Inspired by the study by Vijesh Krishna and A. G. Adeeth Cariappa (PhD), which covers all three points in detail with real examples.