Common Practice Standards must have India outlook

India's agroforestry sector presents a significant opportunity to enhance carbon finance through Afforestation, Reforestation, and Revegetation (ARR) initiatives. With the potential to expand agroforestry from 28.4 million hectares to 53 million hectares by 2050, it plays a vital role in both environmental sustainability and economic development. Recent research indicates that, with appropriate policies, the sector could contribute an additional carbon sink of over 2.5 billion tons of CO2 equivalent by 2030.

Current Challenges in Carbon Standards

• Common Practice Definition: The "common practice" criterion in carbon finance assesses whether a project is additional and beyond typical activities. Current standards, like Verra's VCS and the Gold Standard, may classify many Indian agroforestry practices as “common,” thus excluding them from carbon credits.
• Fragmented Landholdings: India's agricultural landscape is characterized by small and fragmented landholdings, with 1% of farmers owning less than two hectares. This scattered approach often leads to agroforestry practices that fail to meet the additionality criteria set by global carbon standards.
• Impact on Farmers: Excluding small and marginal farmers from ARR carbon finance projects denies them the chance to earn additional income from carbon credits, exacerbating economic challenges in rural areas.

Need for India-Centric Approaches

• Redefining Common Practice: An urgent need exists to redefine the common practice criterion to reflect the unique challenges of India's agroforestry sector. Recognizing even small, incremental changes in land management can be transformative for farmers.
• Unlocking Carbon Sequestration Potential: Revising these standards could unlock significant carbon sequestration potential, allowing more farmers to participate in carbon finance projects and generate additional income streams, thereby supporting India’s climate goals.
• Promoting Systematic Agroforestry: Carbon credit platforms should design incentives that encourage systematic agroforestry practices, enhancing both environmental sustainability and rural livelihoods while addressing challenges like low productivity and environmental degradation.

Benefits of ARR Initiatives

• Alternative Livelihoods: Agroforestry integrated with ARR initiatives can provide alternative livelihoods for farmers, addressing issues like dependence on monsoons and low agricultural productivity.
• Economic Diversification: By integrating trees into agricultural landscapes, farmers can tap into additional revenue streams through carbon sequestration, offering a viable pathway to income diversification amidst unpredictable weather patterns.
• Environmental Benefits: ARR projects not only provide economic gains but also enhance soil fertility, improve water retention, and mitigate erosion, thereby promoting long-term agricultural sustainability and resilience.

Practice Question

Q. Discuss the potential of agroforestry in India as a strategy for enhancing carbon finance through ARR initiatives. What changes are necessary in international carbon standards to accommodate the unique challenges faced by small and marginal farmers?