Patch, a climate finance platform, and Varaha, a carbon project developer, have announced a new multimillion-dollar deal. This partnership focuses on supporting carbon removal projects that help small farmers and protect the environment. Together, they aim to remove carbon from the air while creating jobs and improving communities in Asia.
Their partnership is already showing results, and it could become a model for how climate finance can benefit both the planet and people. Let’s unravel how their approach to carbon removal works.
Nature, Farmers, and Finance: A New Way to Tackle Carbon Removal
Patch is a U.S.-based company that helps businesses invest in carbon credit projects. These projects either prevent carbon emissions or remove carbon dioxide (CO₂) from the atmosphere. Patch works with trusted partners around the world to ensure these projects are effective and real.
Varaha is one of Asia’s leading companies in developing carbon removal projects. It works with small farmers across countries in South Asia to run nature-based projects such as reforestation, regenerative agriculture, and biochar. These projects capture CO₂ and also help local people and ecosystems.
Now, with support from Patch, Varaha will have more funding to expand these projects across Asia. The deal is backed by more than 35 companies around the world, including Sendle, a shipping company that aims to reach net-zero emissions by 2040.
Brennan Spellacy, CEO and Co-founder of Patch, remarked:
“This partnership demonstrates the real-world impact of high-integrity carbon removal solutions, which are set to play an increasingly critical role in global climate action. Together, Patch and Varaha are helping companies responsibly deploy funds to carbon credit projects – helping to unlock billions in climate finance.”
What Are the Projects Involved?
The partnership supports a range of nature-based projects that remove CO₂ in ways that also benefit the environment and local people. Some of the key project types include:
- Reforestation: Planting trees to absorb CO₂ from the atmosphere and rebuild forests.
- Regenerative agriculture: Farming in ways that protect soil, increase carbon storage, and reduce the need for harmful chemicals.
- Biochar: Turning plant waste into a form of charcoal that stores carbon and improves soil health.
One of the largest projects is a biochar project that removes invasive species and restores grasslands. It is one of the biggest biochar projects in the world.
The Key Results So Far
Even though this partnership is still growing, it has already made some results:
- 1.5 million tonnes of CO₂ removed from the atmosphere.
- 100,000+ smallholder farmers involved in the projects.
- 4,000 hectares of grassland were restored.
- 50,000 part-time workdays created for local communities.
- $2.19 million in carbon revenue has gone directly to small farmers.
- 100,000 tonnes of illegal logging and biomass burning stopped.
- 31% increase in grassland vegetation, which means healthier ecosystems.
These figures highlight the reported outcomes of the partnership’s early efforts.
Supporting Small Farmers
A major focus of this partnership is helping smallholder farmers—people who grow crops on small plots of land, often with few resources. In many parts of Asia, these farmers face challenges like poor soil, extreme weather, and low crop prices.
Varaha works directly with these farmers to help them switch to better farming methods that also capture carbon. With the extra income from selling carbon credits, farmers can earn more money and build more secure futures for their families.
Each carbon credit represents a tonne of removed or reduced CO₂ from the atmosphere.
This approach aligns with the concept of ‘climate justice,’ which refers to including vulnerable communities in climate solutions.
The Patch-Varaha Climate Finance Model
Patch provides a platform that makes it easy for businesses to buy carbon credits. These businesses might want to offset their emissions or support environmental goals. Patch checks all the projects carefully to make sure they are real, effective, and ethical.
Varaha develops and manages the projects on the ground. It uses science, satellite technology, and artificial intelligence (AI) to monitor progress and measure the actual carbon removal. This helps build trust in the carbon market by showing clear, evidence-based results.
By working together, Patch and Varaha connect global companies with high-impact local projects. This kind of collaboration could contribute to scaling up climate action.
Madhur Jain, CEO and Co-Founder of Varaha, emphasized this deal, noting:
“At Varaha, we are committed to developing high-quality, scalable carbon projects that drive real climate impact. As our collaboration with Patch grows, we look forward to deepening our efforts in building a more transparent and efficient carbon market.”
So, Why Carbon Removal?
Carbon removal means taking CO₂ out of the air and storing it so it doesn’t cause global warming. Scientists say that in addition to cutting emissions, the world also needs to remove billions of tons of CO₂ to meet climate goals.
According to the IPCC, the world needs to remove about 10 billion tonnes of CO₂ every year by 2050 to stay on track with the Paris Agreement goals. By 2100, that number could rise to 20 billion tonnes per year.
Nature-based solutions, like trees, soil, and biochar, are widely used approaches to do this. They can be cost-effective, improve biodiversity, and support local communities. But they need funding—and that’s where climate finance platforms like Patch come in.
The Bigger Picture
The Patch-Varaha partnership shows that carbon markets offer a way to reduce emissions and support people, jobs, and nature. By combining strong technology, local knowledge, and trusted partnerships, they’re providing an example of a potential approach to climate finance.
As demand for carbon removal continues to rise, deals like this will become more common. This partnership shows that reaching net-zero emissions could also mean making climate solutions work through collaboration.
