| PYQ Relevance: Q). Should the pursuit of carbon credits and clean development mechanisms set up under UNFCCC be maintained even though there has been a massive slide in the value of a carbon credit? Discuss with respect to India’s energy needs for economic growth. (UPSC CSE 2014) Q). In the view of the declining average size of land holdings in India which has made agriculture non – viable for a majority of farmers should contract farming and land leasing be promoted in agriculture? critically evaluate the pros and cons. (UPSC CSE 2015) Q). Sikkim is the first ‘Organic State’ in India. What are the ecological and economical benefits of Organic State? (UPSC CSE 2018) Prelims: In the context of India, which of the following is/are considered to be practice(s) of eco-friendly agriculture? (UPSC CSE 2020) 1. Crop diversification 2. Legume intensification 3. Tensiometer use 4. Vertical farmingSelect the correct answer using the code given below: (a) 1, 2 and 3 only (b) 3 only (c) 4 only (d) 1, 2, 3, and 4 |
Mentor’s Comment: Agroforestry plays a crucial role in enhancing the resilience of Indian agriculture through various mechanisms. By integrating trees with crops and livestock, agroforestry provides farmers with multiple income streams, reducing dependence on single crops and mitigating the impact of market fluctuations. The integration of trees provides shade and wind protection, making agricultural systems more resilient to extreme weather events such as droughts and floods. This adaptability is vital for farmers facing unpredictable climate patterns. In today’s editorial, we will focus on Indian-centric issues.
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Let’s learn!
Why in the News?
Recent studies indicate that with the right policies and financial support, India could sequester an additional 2.5 billion tons of CO2 equivalent by 2030 in the agroforestry sector.
- Currently, agro-forestry represents 8.65% of India’s land and contributes 19.3% of its carbon stocks, playing a vital role in both environmental sustainability and economic growth.
- India is poised to increase agroforestry area from 28.4 million hectares to 53 million hectares by 2050.
| CASE STUDY of UP: • In Uttar Pradesh, a new agroforestry project aims to connect local farming with the global carbon credit market, potentially generating 4.5 million carbon credits valued at around Rs 230 crore. • This initiative is part of a broader strategy to enhance rural incomes while increasing the state’s green cover from 9.23% to 15% by 2027. • The success of these projects hinges on adapting carbon finance standards to better suit India’s unique agricultural landscape, which could unlock further opportunities for smallholder farmers. |
How does the ‘Polluter Pays Principle’ apply to carbon credits in agro-forestry?
The Polluter Pays Principle (PPP) is a fundamental concept in environmental economics that holds polluters responsible for the costs associated with their environmental impact.
- Responsibility for Emissions: Industries that emit greenhouse gases are required to compensate for their emissions by purchasing carbon credits.
- Each credit represents one ton of CO2 or its equivalent that has been sequestered or reduced, which creates a financial incentive for these industries to invest in carbon offset projects like agroforestry.
- Market Dynamics: The carbon credit market operates on the principle that companies must buy credits to offset their emissions, thus internalizing the external costs of pollution.
What are the present issues for the Indian Market?
- In carbon finance, “common practice” assesses the projects that have additional regional activities (larger areas), meaning they are disqualified from earning carbon credits if they don’t provide additional environmental benefits.
- For example, standards like Verra’s VCS and Gold’s current definitions reflect large-scale agricultural practices in regions like Latin America and the U.S., overlooking India’s context of small, fragmented landholdings.
- However, in India, approximately 86.1% of farmers have less than two hectares, often practicing agroforestry in a non-systematic manner, which may not meet the additionality criteria. Many Indian farmers are excluded from ARR carbon finance projects due to this.
Why is there a need for an India-centric approach?
Revising standards to fit India’s fragmented small-holder model could allow more farmers to participate in carbon finance projects.
- Enhanced Income Streams: Integrating agroforestry with Afforestation, Reforestation, and Revegetation (ARR) initiatives provides farmers with additional income through carbon credits, diversifying their revenue sources.
- This integration helps tackle issues such as low productivity, small land holdings, dependence on monsoons, and environmental degradation by promoting sustainable land management practices.
- Soil and Ecosystem Health: Agro-forestry practices improve soil quality, enhance water retention, and mitigate erosion, contributing to overall ecosystem health and agricultural productivity.
- Biodiversity Conservation: The integration encourages greater biodiversity by incorporating various tree species alongside crops, promoting ecological balance within agricultural landscapes.
- Alignment with National Goals: The integration supports India’s climate goals and commitments under international agreements by increasing carbon sequestration potential and enhancing green cover.
- Long-Term Sustainability: By establishing a systematic approach to agroforestry through ARR initiatives, farmers can achieve sustainable agricultural practices that ensure long-term productivity and environmental health.
Way Forward:
- The Energy and Resources Institute (TERI) has launched 19 ARR projects across seven states in India, benefiting over 56,600 farmers.
- To scale these initiatives, international carbon finance platforms must revise their standards to align with the realities of Indian agriculture.
- A systematic approach to agro-forestry supported by carbon finance can help farmers diversify their income, making them more resilient to climate variability.
