Carbon Credit Trading: Govt Launches Framework for Agri Sector

The Government has launched a framework to promote the trading of carbon credits in the agricultural sector. Such trading will be on a voluntary basis.

As per the press release dated January 29, 2024, the framework for a voluntary carbon market was developed to encourage small and medium farmers to avail of carbon credit benefits. Carbon markets are utilised to reduce greenhouse gas emissions and carbon credits can be traded through these financial markets. Hence, the framework is expected to facilitate the adoption of environment-friendly practices in the agricultural sector.

The Union Minister of Agriculture and Farmers’ Welfare and Tribal Affairs, Arjun Munda called for cooperation from Ministries and organisations in this regard. He referred to the issues faced around the world, including global warming to emphasise the need to move ahead with caution.

It is envisaged that the accreditation protocol of agroforestry nurseries under the framework will “strengthen the institutional arrangements for production and certification of planting material on a large scale to promote agroforestry in the country”. Further, the protocol will aid in realising the objectives of the National Agroforestry Policy.