VCM in Agriculture Sector and Accreditation Protocol of Agroforestry Nurseries

Published: 2nd Feb, 2024

Context

Framework for Voluntary Carbon Market in Agriculture Sector and Accreditation Protocol of Agroforestry Nurseries has been launched.

Key Highlights

Framework for Voluntary Carbon Market (VCM):
- Ministry of Agriculture and Farmers’ Welfare devised a framework for VCM in the agricultural sector.
- Objective is to encourage small and medium farmers to benefit from carbon credits.

What is Voluntary Carbon Market (VCM)?

The VCM gives companies, non-profit organizations, governments, and individuals the opportunity to buy and sell carbon offset credits.
A carbon offset is an instrument that represents the reduction of one metric tonne of carbon dioxide or GHG emissions.
Companies that are unable to reach their greenhouse gas (GHG) emission targets can purchase carbon offset credits by investing in environmental projects that can avoid, reduce, or remove carbon emissions.

Benefits of Introducing Farmers to Carbon Market:
- Fosters adoption of environmentally friendly agricultural practices.
- Accelerates sustainable agricultural methods.
Significance of Agriculture Sector:
- Agriculture contributes significantly to the economy and livelihoods, engaging 54.6% of the workforce.
- GDP contribution: 18.6%.
Introduction of the Accreditation Protocol for Agroforestry Nurseries.
- Strengthening Agroforestry:Accreditation Protocol aims to strengthen institutional arrangements for large-scale production and certification of planting material.
- Will promote agroforestry in the country.

What are Carbon Credits?
- Carbon credits were devised as a mechanism to reduce greenhouse gas emissions by creating a market in which companies can trade in emissions permits.
- Under the system, companies get a set number of carbon credits, which decline over time.
- They can sell any excess to another company.
India’s Carbon Market:
- India has 1,451 projects registered or under various stages of consideration at the world’s two leading carbon registries.
- Carbon credits issued to Indian entities are worth 11% of India’s annual greenhouse gas emissions in 2021.
- Indian entities have already earned about 652 million dollars from carbon credits used to offset emissions.

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