Agroforestry’s Potential in India

• India has significant potential to integrate agroforestry with carbon finance projects, specifically through Afforestation, Reforestation, and Revegetation (ARR) initiatives.
• The current agroforestry coverage is 28.4 million hectares, which could increase to 53 million hectares by 2050.
• Agroforestry accounts for 8.65% of India’s total land area and contributes 19.3% of the country’s carbon stocks.
• With proper policy support, the sector could contribute an additional carbon sink of 2.5 billion tons of CO2 equivalent by 2030.

Importance of ‘Common Practice’ in Carbon Finance

• The term "common practice" is a key criterion in assessing carbon finance eligibility.
  • It determines whether a project is "additional" — meaning, it exceeds what is typically done in a region.
• In ARR projects, common practice determines if similar activities are performed without carbon credits.
• According to carbon standards like Verra’s Verified Carbon Standard (VCS) and the Gold Standard:
  • Projects deemed "common practice" do not qualify for carbon credits because they don’t provide additional environmental benefits.

Challenges of Common Practice for India’s Agroforestry

• India''s agricultural structure is unique due to small and fragmented landholdings.
  • 1% of farmers are small and marginal, owning less than two hectares of land.
• Small farmers practice agroforestry in a scattered, unsystematic way, planting trees alongside crops or on small patches of land.
• While beneficial, these practices often fail to meet the additionality criteria in carbon standards.
  • As a result, many Indian farmers are excluded from carbon finance projects and the associated income opportunities.

Need for India-Centric Approaches to Carbon Standards

• India''s agricultural landscape is distinct, requiring a redefinition of the "common practice" criteria.
  • An India-centric approach would recognize that even small improvements in agroforestry are transformative.
• Revising carbon standards to reflect India’s fragmented, small-holder model could:
  • Unlock the vast potential for carbon sequestration.
  • Enable more farmers to participate in carbon finance projects.
  • Enhance both environmental sustainability and rural livelihoods.

Economic and Environmental Benefits of ARR Projects for Farmers

• Economic Benefits:
  • ARR projects offer farmers additional income streams through carbon sequestration.
  • This provides financial stability in the face of unpredictable weather and fluctuating crop yields.
• Environmental Benefits:
  • Agroforestry integrated with ARR improves soil fertility, water retention, and mitigates erosion.
  • This ensures long-term sustainability and increases agricultural productivity.

The Role of Research and International Standards

• Research institutes like The Energy and Resources Institute (TERI) have demonstrated the viability of ARR projects in India.
  • TERI spearheaded 19 projects across seven states, benefiting over 56,600 farmers.
• Need for Standard Revision:
  • For initiatives to scale, international carbon finance platforms must revise their standards to align with India''s agricultural realities.
  • Revising the "Common Practice" guidelines would:
    • Include more Indian farmers in carbon finance projects.
    • Boost rural incomes and support sustainable development.

The Path Forward for Agroforestry and Carbon Finance in India

• Adaptation of International Standards:
  • Carbon credit platforms like Verra and Gold Standard need to revise their standards to reflect India''s agricultural challenges.
• Unlocking Agroforestry Potential:
  • By integrating ARR initiatives, India can maximize the potential for sustainable development.
  • Millions of small farmers could benefit from carbon credits, contributing to India’s economic resilience and environmental sustainability.

Conclusion

India’s agroforestry sector has immense potential for carbon sequestration and rural development. However, the sector''s growth hinges on revising international carbon finance standards to better accommodate India''s unique agricultural structure. By doing so, India can achieve its climate goals while uplifting millions of small and marginal farmers, ensuring a sustainable future for the country.