Context

India's agroforestry sector holds significant potential for integrating with carbon finance projects through Afforestation, Reforestation, and Revegetation (ARR) initiatives. The area dedicated to agroforestry could expand from the current 28.4 million hectares to 53 million hectares by 2050.

Overview

·       Currently, agroforestry comprises 8.65% of India's total land area and contributes 19.3% to the country's carbon stocks, therefor making it is vital for both environmental sustainability and economic growth.

·       Recent studies indicate that with appropriate policies, financial support, and incentives, this sector could create an additional carbon sink of over 2.5 billion tons of CO2 equivalent by 2030.

Common Practice’ in Carbon Standards

·       In carbon finance, the term "common practice" is a crucial criterion for determining whether a project is considered additional—meaning it exceeds typical practices in a given area.

Ø  For Afforestation, Reforestation, and Revegetation (ARR) projects, this involves assessing whether similar activities occur routinely without the financial incentives provided by carbon credits.

Ø  According to carbon standards like Verra’s Verified Carbon Standard (VCS) and the Gold Standard, activities classified as "common practice" may not qualify for carbon credits, as they are not viewed as delivering additional environmental benefits beyond what is standard.

·       However, the existing definition of common practice in global carbon standards often reflects the realities of large-scale agricultural operations in regions such as Latin America, Africa, and the United States, where landholdings are typically large and contiguous.

Ø  In contrast, India's agricultural landscape is characterized by small and fragmented landholdings. Recent data shows that 86.1% of Indian farmers are small and marginal, with landholdings of less than two hectares.

Ø  These farmers often practice agroforestry in a scattered and non-systematic manner, planting trees alongside crops or on small patches of fallow land.

·       While these practices are beneficial, they may not meet the additionality criteria set by current carbon standards, as they are viewed as "common" within the Indian context. This creates a significant challenge, effectively excluding many Indian farmers from participating in ARR carbon finance projects and denying them the opportunity to earn additional income from carbon credits.

Need for India-Centric Approaches

·       Given India’s distinct agricultural landscape, there is an urgent need to redefine the common practice criterion to better address the specific challenges and opportunities within the country's agroforestry sector. An India-centric approach would recognize that even small, incremental changes in land management—such as adopting more systematic agroforestry techniques or using carbon finance to sustain tree cover—can be transformative.

·       Revising the common practice standards to reflect the fragmented, small-holder model prevalent in India would unlock significant potential for carbon sequestration.

Ø  This would enable more farmers to engage in carbon finance projects, providing them with additional income streams while contributing to India’s climate objectives.

Ø  By acknowledging the fragmented nature of Indian agriculture, carbon credit platforms could design incentives that promote systematic agroforestry, enhancing both environmental sustainability and rural livelihoods.

·       Integrating agroforestry with Afforestation, Reforestation, and Revegetation (ARR) initiatives presents a viable solution to many challenges faced by India’s agricultural sector.

Ø  These projects can promote alternative livelihoods and provide additional income for farmers, helping to address issues like low productivity, reliance on monsoons, and environmental degradation.

Ø  The carbon finance from ARR projects allows for a more systematic and sustained approach to agroforestry, which many Indian farmers struggle to achieve due to financial constraints and market pressures.

·       For farmers dealing with unpredictable weather and fluctuating crop yields, participating in ARR projects offers a pathway to income diversification.

Ø  By incorporating trees into their agricultural landscapes or restoring degraded forest areas on their land, farmers can access additional revenue through carbon sequestration.

Ø  Beyond economic benefits, ARR projects also provide essential environmental advantages, such as enhancing soil fertility, improving water retention, and reducing erosion, thereby boosting agricultural productivity and ensuring long-term sustainability.

Helping Small and Marginal Farmers

·       Research institutes like The Energy and Resources Institute (TERI) have already highlighted the potential of Afforestation, Reforestation, and Revegetation (ARR) projects in India, leading 19 initiatives across seven states that benefit over 56,600 farmers.

 However, for these initiatives to scale effectively, it is crucial that international carbon finance platforms revise their standards to better reflect the realities of Indian agriculture.

·       As India aims to expand its agroforestry sector and harness the advantages of carbon finance, it is vital for international standards to evolve in line with the specific conditions of the Indian subcontinent.

Ø  Revising the “Common Practice” guidelines to be more inclusive of Indian agroforestry methods will enable millions of small and marginal farmers to engage in ARR projects.

Ø  This would not only foster sustainable development but also significantly enhance the incomes of countless rural households, contributing to the overall economic and environmental resilience of the country.

·       It is essential for carbon credit platforms like Verra and the Gold Standard to recognize the need for India-centric standards. Only then can the full potential of agroforestry and ARR initiatives be realized, paving the way for a greener, more sustainable, and economically prosperous future for India’s farmers.

Government’s efforts for agroforestry in India

·       National Agroforestry Policy (2014): This policy focuses on increasing tree cover on agricultural lands, enhancing livelihoods, and integrating trees with crops and livestock.

·       Pradhan Mantri Fasal Bima Yojana: This crop insurance program supports farmers in adopting agroforestry by providing financial protection against crop losses.

·       Soil Health Management: Initiatives aimed at improving soil health through organic farming and agroforestry practices promote sustainable land management.

·       Promotion of Afforestation and Reforestation: Under the Green India Mission, efforts are made to increase forest cover and promote agroforestry to boost carbon sequestration.

·       Financial Support and Subsidies: The government provides financial aid, subsidies, and credit options for farmers implementing agroforestry practices.

·       Capacity Building and Training: Programs are conducted to educate farmers on agroforestry methods, sustainable management, and the benefits of incorporating trees into farming.

·       Research and Development: Organizations like the Indian Council of Agricultural Research (ICAR) conduct research on agroforestry species, practices, and technologies tailored to various agro-climatic conditions.

·       Public-Private Partnerships: Collaborations with NGOs and the private sector aim to promote agroforestry practices and create markets for agroforestry products.

Conclusion

To unlock the potential of India’s agroforestry sector, international carbon finance standards must evolve to reflect the unique challenges of small and marginal farmers. By embracing India-centric approaches, we can enhance rural livelihoods, promote sustainable development, and drive significant progress towards environmental and economic resilience in the country.

Source: The Hindu