Bengaluru: In its first carbon credit initiative, NABARD has launched a pilot project in Karnataka, to generate carbon credits through biomass management and border tree plantations.The project was rolled out by National Bank for Agriculture and Rural Development (NABARD) Consultancy Services, a wholly-owned subsidiary of NABARD, in collaboration with Karnataka horticulture and forest departments and funded by Rabo Bank, a multinational banking and financial services company from the Netherlands.The move is aimed at helping farmers grow crops that guzzle greenhouse gases, earn carbon removal units through biomass management and tree plantations. The pilot project involves 3,500 mango farmers in Koppal district. According to horticulture department officials, the pilot focuses exclusively on mango plantations that are less than five years old. “We identified 11 eligible plant species, but this time only mango was taken up. Border tree plantations are also mandatory under the project. The forest department will provide saplings for free, and we will be signing an agreement with them in two weeks,” says Shamla Iqbal, secretary, horticulture & sericulture department.The pilot, signed last July, has seen delays in farmer payments due to the complex compliance and auditing requirements. “This is a learning process for all partners. Some delays were inevitable. Farmers will receive payments after biomass assessment and carbon credit calculations are completed,” she clarifies. The horticulture department hopes that once the first round of payments is made, more farmers will come forward to join the initiative. The earnings potential for farmers under this scheme is still being assessed. Officials cited the success of a similar initiative in Andhra Pradesh’s Anantapur district, where farmers reportedly earn between Rs 20,000 and Rs 40,000 per hectare from carbon credits. If everything goes as planned, groundwork such as border plantations and further biomass assessments may begin in Karnataka by Sept. Full-scale implementation depends on the outcome of ongoing audits and clearances.But many farmers are not buying itAs a new era in climate-linked farming takes shape, several farmers’ groups are pushing back, calling the initiative exploitative and unjust. Associations argue that farmers cannot be allowed to bear the brunt of any company’s pollution.Chukki Nanjundaswamy, farmer activist associated with the Karnataka Rajya Raitha Sangha (KRRS), says: “It is a natural product turned into yet another commodity, just like seeds that once belonged to farmers but now make them mere buyers. Carbon credits are driven by western nations responsible for climate change, yet they expect the global south to find solutions. Big banks funding coal and power projects are now using carbon credits for greenwashing. With mango prices crashing, farmers’ vulnerability is being exploited. We cannot be held responsible for a global climate crisis — carbon credits are nothing but a greenwash.”N Chinnappa Reddy, president, Kolar District Mango Growers Association, says: “We have little information from NABARD. They told us only the basics — that certain plants would earn us money — but two years have passed with no progress. We don’t even understand the basics of carbon credits. If you ask us about our view, we honestly don’t even know the basics of carbon credits.” Karnataka has around 1.5 lakh hectares under mango cultivation and over 2.8 lakh mango farmers with key mango growing districts including Kolar, Ramanagara.India’s potential vs farmers’ skepticismWith organisations like the European Union and several global corporations looking to buy carbon credits (CC) from other countries, and a domestic market set to launch next year, experts say the CC demand is expected to grow. However, farmer skepticism and lack of clarity on payment models remain major challenges.“Carbon credits can come from either avoidance — using alternative technologies to cut emissions — or carbon capture, such as direct air capture (DAC) or carbon capture, utilisation, and storage (CCUS). Agriculture offers a huge opportunity in CCUS,” says Subhradeep Das, a developmental economist. “India doesn’t yet have a domestic carbon market. Currently, companies participate in voluntary carbon markets, with buyers like tech giants (Microsoft, Google) and oil and gas firms. South India, with its large farmlands, cash crops, and agroforestry potential, stands out as a hub for such initiatives,” he says. “Global carbon credit prices remain volatile due to geopolitical factors, but demand is set to surge by 2030 with Paris Agreement targets.” Josh Wycliffe, a resident of Kolar and COO of the International Solar Alliance, a treaty-based intergovernmental organisation under the UN system, says: “Though regulatory hurdles exist, farmer risk is low since plantations are already in place. With demand soaring due to corporate ESG targets, a strong cooperative can connect farmers to big buyers, ensuring fair pricing and steady income.”
