Carbon trading and sequestration in agroforestry and cropland management: a policy perspective

Climate change mitigation requires innovative approaches across all economic sectors, and agriculture plays a pivotal role in carbon trading and sequestration. The carbon market plays a critical role in climate change mitigation while also providing financial incentives. The Clean Development Mechanism, a predecessor of all carbon credit schemes, has mostly focused on the compliance mechanism. Developing countries such as India, with vast lands under agrarian landholdings, need to seize the opportunities presented by the evolving voluntary carbon market (VCM). However, this potential remains largely unexplored, partly due to a lack of awareness and reluctance stemming from the procedural hurdles in securing VCM projects. The study revealed significant implementation challenges, including high upfront costs, extended payback periods of 5–10 years, limited market access for smallholder farmers, and knowledge gaps in carbon sequestration practices. This study examines the potential of carbon trading and sequestration within agroforestry and cropland management systems as market-based solutions to reduce greenhouse gas emissions and provide economic incentives to farmers. Technological innovations, including satellite monitoring, AI-based carbon accounting tools, and blockchain verification systems, have revolutionize carbon measurements, reporting and verification, and trading transparency. This study also presents a comprehensive policy roadmap that emphasizes the integration of traditional farming practices with modern carbon-efficient models. Key recommendations include strengthening policy frameworks such as the National Agroforestry Policy, establishing simplified measurement and verification systems for smallholder farmers, creating local carbon aggregator networks, and promoting indigenous land use practices. Success requires collaborative efforts involving government agencies, research institutions, and farmers, supported by streamlined registration processes, financial incentives, and comprehensive training programs, to unlock the full potential of agricultural carbon sequestration for climate change mitigation.