In recent years, the world has been working hard to fight climate change. This has created new ways for landowners to help the environment while also earning extra money. One such way is through carbon credits, a system that pays landowners for activities that reduce pollution or absorb harmful gases from the air.

For landowners in India, this is a great chance to improve their income while also taking care of their land in a sustainable way. This guide explains everything about carbon credits in India, including how much money landowners can make, the steps to get started, and the key factors that affect earnings.

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What Are Carbon Credits?

A carbon credit is like a permission slip that allows a company to release one ton of carbon dioxide or other similar gases into the air. These credits are part of a system that helps reduce pollution. If a company produces less pollution than allowed, it can sell its extra credits to another company that is having trouble staying within its limit. This way, companies have a reason to cut down on pollution because they can make money by reducing their emissions.

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The Relevance of Carbon Credits in India

India has a lot of farmland and different types of natural areas, which can help capture and store carbon from the air. Planting more trees, taking care of forests, using better farming methods, and managing land wisely can help reduce carbon pollution. To support this, special programs offer rewards (called carbon credits) to landowners who follow eco-friendly practices.

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Earnings from Carbon Credits: What Can Indian Landowners Expect?

Indian landowners can earn money by selling carbon credits, but the amount depends on factors like land type, carbon-saving methods, project size, and market rates. Here’s a breakdown of different ways they can earn:

1. Farming Methods That Store Carbon in Soil

Farmers can improve soil quality using eco-friendly practices, which helps store more carbon in the ground. This allows them to earn carbon credits.

• Right now, they can get around ₹780 per carbon credit in the market.
• Some big companies may pay up to ₹2,000 per credit if they sign direct deals.
• The number of credits they get depends on how much carbon their soil captures, which varies based on the method used.

2. Planting Trees on Unused Land

Growing trees on empty or damaged land is another way to trap carbon and earn credits.

• For example, the Mid-Himalayan Watershed Project in Himachal Pradesh promoted tree planting, which absorbed a lot of CO₂.
• On average, landowners can earn about ₹2,500 per hectare from carbon credits, but this depends on tree growth and other factors.

3. Changing How Rice is Grown to Cut Methane

Rice fields often release methane gas when flooded. Switching to different methods, like direct-seeded rice (DSR), can cut emissions and earn carbon credits.

• A farmer in Haryana, Jitendra Singh, switched to DSR and used 12-35% less water while saving money on labor and fertilizers.
• The amount earned from carbon credits depends on how much methane is reduced and market prices, but it can provide extra income while helping the environment.

4. Using Biogas in Dairy Farming

Dairy farmers can install biogas plants to process manure, which reduces methane emissions and generates carbon credits.

• The National Dairy Development Board (NDDB) and Sustain Plus Energy Foundation (SPEF) have helped over 1,000 dairy farmers earn money from carbon credits using biogas.
• While exact earnings were not shared, this shows that sustainable dairy farming can be profitable.

Indian landowners can make extra income by adopting sustainable practices that help reduce carbon emissions. The amount they earn depends on the method used, land conditions, and current carbon credit prices.

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Factors Influencing Carbon Credit Earnings

How much money landowners can make from carbon credits depends on a few important things:

1. What They Do on the Land – Some activities remove more carbon from the air than others. For example, planting trees (afforestation) can store more carbon over time than some farming methods.
2. Size and Time – Bigger projects and those that last a long time usually earn more carbon credits, which means more money.
3. Approval and Certification – If a project is checked and approved by trusted organizations (like Verra’s Verified Carbon Standard), the carbon credits are seen as more valuable and can sell for higher prices.
4. Market Prices – The price of carbon credits changes depending on how many people want to buy them and how many are available. Selling to trusted buyers or companies that manage carbon credits can help landowners get better earnings.

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Challenges and Considerations

If landowners want to earn money from carbon credits, they should be aware of some challenges:

• Slow Payments: Getting carbon credits verified and approved takes time. Some farmers have had to wait a long time to receive their money because of delays in this process.
• Middlemen Take a Cut: Sometimes, other people (like brokers or companies) help landowners sell their carbon credits. But these middlemen often take a big share of the earnings, leaving landowners with less money.
• Lack of Awareness: Many small farmers don’t know much about carbon credit programs or don’t have the resources to join them. It’s important to make sure everyone gets a fair chance to benefit from these programs.

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Steps for Landowners to Participate in Carbon Credit Programs

How Landowners Can Earn Money from Carbon Credits

If you own land and want to make money by helping the environment, follow these steps:

1. Choose the Right Methods
   Look at your land and see what eco-friendly changes you can make. This could mean:
   • Growing plants that help the soil (cover crops)
   • Stopping deep plowing (no-till farming)
   • Planting more trees (afforestation)
   • Using systems that turn waste into energy (biogas units)
2. Work with Trusted Experts
   Find organizations, government programs, or NGOs that help landowners join the carbon credit market. They can give advice, tools, and support. For example, Boomitra helps farmers use sustainable methods and uses AI to measure carbon in the soil, making it easier to earn and sell carbon credits.
3. Learn the Rules for Approval
   To earn carbon credits, you must track and prove how much carbon your land is capturing or how much pollution you are reducing. Good record-keeping is important to get official approval.
4. Look for Selling Opportunities
   Stay updated on how much carbon credits are worth and where to sell them. Some programs, like the Family Forest Carbon Program, help landowners find buyers.
5. Check If It’s Worth It
   Compare the costs of making these eco-friendly changes with how much you can earn from carbon credits. Make sure it’s a good financial decision for the long run.

Also Read: Navigating the Voluntary Carbon Market: Opportunities and Challenges

Conclusion

Indian landowners have a great chance to help fight climate change while also making extra money. By using eco-friendly farming and land management methods, they can earn carbon credits. These credits are in high demand worldwide. But to make the most of this opportunity, landowners need to plan well, understand the possible challenges, and work with trusted partners. As the world focuses more on protecting the environment, getting involved in carbon credit programs can be a smart and rewarding move.