Carbon Trading Mechanism in Agriculture Sector

Context

The Union Minister for Agriculture and Farmers’ Welfare announced in Rajya Sabha that the agriculture sector is now included under the Carbon Credit Trading Scheme, 2023.

Carbon Credit Trading Scheme, 2023

• Initiative: Launched by the Ministry of Power to implement a carbon trading mechanism in India.
• Carbon Credit Certificates: Issued by the Bureau of Energy Efficiency (BEE) to entities exceeding their emission reduction targets.
• Obligated Entities: Notified by the Ministry of Power based on BEE recommendations.
• Emission Intensity Targets: Set by the Ministry of Environment, Forest, and Climate Change, based on recommendations from the Ministry of Power.
• Compliance: Entities failing to meet targets must purchase carbon credit certificates.
• Oversight: Managed by a National Steering Committee chaired by the Power Secretary.

Carbon Trading Mechanism in Agriculture Sector

• Framework Development: The Ministry of Agriculture & Farmers Welfare has developed a framework to promote the Voluntary Carbon Market (VCM) among the farming community.
• Objective of VCM: To create awareness and build capacity among stakeholders.
• Benefits for Farmers:
  • Adoption of sustainable agriculture practices.
  • Additional income from carbon credits.
  • Agro-ecological benefits such as improved soil, water, and biodiversity.
• Long-term Goals:
  • Contribute to sustainable development goals.
  • Support rural livelihoods.
  • Promote resilience in agriculture.