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Uttar Pradesh farmers to earn additional income from carbon credits

News from Web 25-Oct-2023

This move comes as part of the efforts to link farming with the global carbon credit market generating an additional income.

Farmers in Uttar Pradesh will soon earn additional income from the carbon credits generated by the plants on their farm boundaries, as the states becomes the first in India to finalise an ‘agroforestry policy.’

In its agroforestry policy, the state aims to increase its green cover from the present 9.23% to 15% by 2027. According to Arun Kumar Saxena, forest and environment minister Uttar Pradesh, this is not possible without participation of farmers as the plants that are being planted on the boundaries of fields play a crucial role in this.

“This is why our government is bringing an agroforestry policy to make process easy for farmers and support them financially,” said the minister on Friday while explaining the reason behind a policy at an event.

Agroforestry promotes carbon-neutral growth. The carbon credits obtained from agroforestry are sold at a price calculated based on their social impact. The carbon price is determined by the ‘polluter pays’ principle, with polluting industries purchasing these carbon credits.

At present one credit is equal to the mass of one ton of carbon dioxide (CO2) or other greenhouse gases (reduced or sequestered via plantation to earn credit).

“How much carbon or greenhouse gases are sequestered are calculated upon the species planted, once they grow completely,” said PK Srivastava, former scientist with CDRI.

As per the policy draft, farmers will get financial support for planting the saplings along with its maintenance till they grow big. The government has also planned to pay them for the carbon credit generated from these trees. Through the increase in green cover, the emission of CO2 will be reduced, and this will be converted into carbon credits.

“The policy will also ensure the quality of plants to be provided to farmers for better yield and earning. This part is important as no farmer will go for agroforestry without a good profit. When they do so, they expect the best produce and maximum profit,” said Saxena.

“At present, six carbon credits can get up to one dollar in exchange. The saplings will be of the species that grow vertically and do not spread horizontally. This is significant so that the crop they grow in their fields gets ample sunlight,” said SK Sharma, principal chief conservator of forest and head of forest force UP.

Agroforestry or tree-based farming is adopted to nurture carbon-neutral growth. Also, once the samplings are grown into trees, the farmers can sell them. The farmers will be adviced to plant a specific set of trees that include 29 species.

“We will not advice them to grow restricted species under agroforestry, if they want to grow for sale,” said Sharma.

The policy will be tabled for discussion before the state cabinet and implemented once the proposal gets a nod from the state cabinet.


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