Bengaluru: In a step towards promoting climate-friendly farming, NABARD has launched its first carbon credit initiative in Karnataka. The pilot project, rolled out by NABARD Consultancy Services in partnership with the state horticulture and forest departments and funded by Dutch financial group Rabo Bank, aims to generate carbon credits through biomass management and border tree plantations, reported The Times of India.
The project currently involves 3,500 mango farmers in Koppal district, focusing on plantations less than five years old. Under the initiative, farmers are encouraged to grow crops and trees that absorb greenhouse gases, allowing them to earn carbon credits in return.
“We shortlisted 11 plant species suitable for the program, but decided to begin with mango. Planting trees along field borders is also a required part of the plan. The forest department will supply saplings at no cost, and a formal agreement is expected soon,” said Shamla Iqbal, Secretary, Horticulture and Sericulture Department.
Though the project was signed in July last year, delays in farmer payments have sparked frustration. Iqbal explained that the complexity of carbon credit compliance and auditing caused setbacks. “This is new territory for everyone involved, so some delays were unavoidable. Farmers will receive payments once carbon assessments are completed,” she said.
Officials remain optimistic, hoping that the first round of payments will encourage more farmers to join. The earnings potential is still being evaluated, but officials pointed to a similar program in Andhra Pradesh’s Anantapur district, where farmers reportedly earned between ₹20,000 and ₹40,000 per hectare through carbon credits.
If the ongoing audits and assessments are cleared, preparations such as additional tree planting may begin by September.
However, not all farmers are convinced. Some groups have criticized the project, calling it unfair and exploitative.
“Nature is being turned into a product that farmers are now being asked to manage for someone else’s benefit,” said Chukki Nanjundaswamy of the Karnataka Rajya Raitha Sangha. “We didn’t create the climate crisis. While our crop prices are falling, companies that caused pollution are now using carbon credits to look green.”
N. Chinnappa Reddy, President of the Kolar District Mango Growers Association, said there has been very little clarity for farmers. “All we were told is that planting certain trees could earn us money. But two years later, we haven’t seen any progress. Most of us don’t even understand what carbon credits are.”
Karnataka has around 1.5 lakh hectares under mango cultivation, with more than 2.8 lakh mango farmers spread across key districts like Kolar and Ramanagara.
With global corporations and entities like the European Union looking to purchase carbon credits, and with India set to launch its own domestic carbon market soon, experts believe there is growing potential for agricultural carbon credit projects.
“Carbon credits come from either reducing emissions or capturing carbon through methods like tree planting. South India, with its large farming base and agroforestry potential, has a real opportunity here,” said Subhradeep Das, a developmental economist. “But farmers need clear guidelines and payment systems to feel confident.”
Josh Wycliffe, Chief Operating Officer of the International Solar Alliance and a resident of Kolar, said that while regulatory challenges remain, the risks for farmers are low since the plantations are already in place. “As demand for carbon credits grows due to environmental goals, strong farmer cooperatives can help connect growers with reliable buyers and ensure fair earnings,” he said.
As the project moves ahead, NABARD and its partners will need to balance opportunity with transparency to win the trust of farmers and turn this pilot into a successful model for climate-resilient farming.
