NABARD ARDNABARD Grade AState AAO
In one line
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
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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.
