Context:
NABARD’s consultancy arm, NABARD Consultancy Services (NCB), has initiated its first pilot carbon credit project in Karnataka’s Koppal district, aiming to integrate climate finance with rural agriculture.
Key Highlights:
- Pilot structure:
- In collaboration with Karnataka’s horticulture and forest departments, the project focuses on biomass management and border tree plantations for farmers with mango orchards less than five years old.
- Around 3,500 mango farmers are participating, with free saplings supplied by the forest department.
- Carbon credit potential & payouts:
- However, compliance, auditing, and assessment delays have slowed initial payouts, though officials expect uptake to improve post first disbursement.
- Criticism and farmer concerns:
- Local farmer groups have labelled the initiative as exploitative and poorly communicated, citing lack of clarity and delayed benefits.
- Scaling carbon finance in agriculture:
- With a voluntary domestic carbon market expected soon, experts highlight the need for cooperative models and transparency to properly harness agriculture as a climate finance frontier.
Significance
This pilot marks NABARD’s pivot into carbon markets, bridging rural farming with climate action. It is supported by global funders like Rabo Bank, and aligns with India’s move toward climate-smart agriculture.
