VCM in Agriculture Sector and Accreditation Protocol of Agroforestry Nurseries
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.
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- 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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