What are Agricultural Carbon Credits?
Agricultural carbon credits , or sustainable agriculture credits, are a mechanism that rewards agricultural and livestock producers for implementing practices that reduce greenhouse gas (GHG) emissions or capture carbon in soils and biomass, making agricultural activity part of the climate solution.
How are they generated?
Through practices that:
They sequester carbon in the soil:
- Direct sowing (no tillage).
- Cover crops and rotation.
- Agroforestry (integrating trees into crops or pastures).
- Use of biochar (soil-enhancing charcoal).
Reduce emissions:
- Efficient fertilizer management (less nitrous oxide, N₂O).
- Methane (CH₄) digesters in cattle manure.
- Sustainable grazing that prevents soil degradation.
They avoid deforestation:
- Preservation of native forests on agricultural lands.
How are they calculated?
The stored carbon ( e.g. , tons of CO₂eq per hectare/year) is quantified by:
Direct measurements
(soil samples, drones, sensors).
Scientific models
( eg : IPCC Tier 2 or 3).
Digital platforms
(remote sensing , IoT ).
The baseline (business-as-usual emissions without sustainable practices) is key to demonstrating additionality.
Main certifying agencies
Verra (VCS)
VM0042 Methodology for agriculture.
Gold Standard
Focus on small farmers.
Climate Action Reserve (CAR):
Sustainable Agriculture Protocol.
Plan Vivo
For community projects
Additional benefits ( co-benefits )
Soil improvement
Increased fertility, water retention.
Biodiversity
Habitats for pollinators.
Climate resilience
Less erosion, better adaptation to droughts.
Rural economy:
Extra income from credits + productivity.
Challenges
Market prices
They depend on:
- Certifier ( e.g. Gold Standard usually pays more).
- Co-benefits ( e.g. if it includes biodiversity or social impact).
- Corporate demand (companies with ESG goals).
Who buys these credits?
Food and beverage companies
( e.g. Nestlé, Danone).
Fashion brands
with sustainable supply chains.
Corporations with Net Zero goals
( e.g. Microsoft, Amazon).
Governments
to meet climate commitments.
Future trends
🛰️ Technology
Blockchain for traceability, satellites for monitoring.
📈 Demand on the rise
Due to the focus on " Carbon" Insetting (trade-offs within the value chain).
🌿 Biodiversity integration
Combined credits (carbon + biodiversity).