Syllabus
GS Paper III – Major crops-cropping patterns in various parts of the country. E-technology in the aid of farmers.
Context
Recent studies indicate that by adapting common carbon market practices to suit India’s specific conditions, the agroforestry sector could potentially sequester an additional 2.5 billion tons of carbon dioxide equivalent by 2030.
Indian Outlook for Common Practice Standards
Introduction
India’s agroforestry sector, a significant contributor to both environmental sustainability and economic development, presents a unique opportunity for integration with carbon finance projects. With its vast potential to expand from 28.4 million hectares to 53 million hectares by 2050, agroforestry could become a substantial carbon sink. Recent research suggests that by implementing appropriate policies, financial support, and incentives, this sector could sequester an additional 2.5 billion tons of CO2 equivalent by 2030. To fully realize this potential, international carbon finance platforms must adapt their standards to better reflect the specific realities of Indian agriculture, ensuring that agroforestry initiatives can effectively contribute to both climate mitigation and sustainable development.
Key Definitions
Carbon Markets and Standards
- Verified Carbon Standard (VCS): The world’s most widely used greenhouse gas (GHG) crediting program that drives finance towards emission reduction and removal activities.
- Carbon Credits: A carbon trading mechanism that allows the owner to emit a certain amount of carbon dioxide or other greenhouse gases (GHGs).
Agroforestry
- Agroforestry: An integrated land-use management system combining agriculture and forestry practices to create more diverse, productive, and sustainable farming environments.
- Afforestation: Establishing a forest or stand of trees in an area previously devoid of tree cover.
- Reforestation: Replanting trees in a deforested area to restore the forest ecosystem.
- Revegetation: Planting and nurturing vegetation to restore ecological balance.
Carbon Management
- Carbon Sinks: Areas that absorb carbon dioxide from the atmosphere, such as forests.
- Carbon Sequestration: The process of capturing and storing atmospheric carbon dioxide.
Common Practice in Carbon Markets: A Critical Overview
- Common Practice Defined:
- Established guidelines and benchmarks for measuring, reporting, and verifying carbon emission reductions.
- Key criterion to assess if a project contributes additional environmental benefits beyond regional norms.
- Role in Climate Finance:
- Vital in the climate finance realm.
- Carbon standards like Verra’s VCS or Gold Standard use it to determine credit eligibility.
- Common practice activities may not qualify for carbon credits.
- Ensures carbon credits are issued only for additional emission reductions.
- Global Practices and Significance:
- Often reflects large-scale agricultural practices in regions like Latin America, Africa, or the US.
- Helps ensure transparency, accountability, and credibility in carbon markets and climate initiatives.
Climate Finance Projects and Carbon Sequestration
- Purpose:
- Designed to sequester carbon from the atmosphere to mitigate climate change.
- Forest growth is an effective method for carbon sequestration.
- Incentives:
- Participants receive various incentives.
- Direct incentives like financial sponsorship from organizations like the World Bank.
- Indirect incentives through carbon credits.
- Companies with emission limits may purchase carbon credits to offset excess emissions.
- Carbon Credits:
- Amount of carbon sequestered determines carbon credits awarded.
- One ton of carbon dioxide can result in a carbon credit valued around 1 crore INR.
- Companies can purchase carbon credits to meet emission reduction obligations.
- Creates a market for carbon credits, incentivizing sustainable practices and environmental stewardship.
India-Centric Approach for Agroforestry and Carbon Finance
- Agroforestry’s Dominance: India’s vast agroforestry potential offers a unique opportunity for carbon finance integration.
- Integrating with ARR Initiatives: Agroforestry can be linked with Afforestation, Reforestation, and Revegetation (ARR) initiatives.
- TERI’s Success:
- The Energy and Resources Institute (TERI) has demonstrated ARR project potential in India.
- Spearheaded 19 projects across seven States, benefiting over 56,600 farmers.
- Expansion Potential: Significant potential to expand agroforestry area from 28.4 to 53 million hectares by 2050.
- Contribution to Carbon Stocks:
- Agroforestry accounts for 8.65% of India’s total land area.
- Contributes 19.3% of India’s carbon stocks.
Benefits of Indianizing Common Practices in Carbon Markets
- Formalizes Agroforestry: Enables a more systematic and sustained approach to agroforestry.
- Improves Agriculture: Helps address issues like low productivity, dependence on monsoons, and environmental degradation.
- Creates Additional Income:
- Enables greater farmer participation in carbon finance projects.
- Provides additional income streams while contributing to India’s climate goals.
- Diversifies income through ARR projects.
- Enhances Rural Livelihoods:
- Acknowledges the fragmented nature of Indian agriculture.
- Improves rural livelihoods.
- Higher Carbon Sequestration:
- Accommodates the fragmented, small-holder model prevalent in India.
- Unlocks vast potential for carbon sequestration.
- Environmental Benefits:
- ARR projects deliver crucial environmental benefits.Enhances soil fertility, improves water retention, and mitigates erosion.
- Bolsters agricultural productivity and ensures long-term sustainability.
- Drives sustainable development.
- Addressing Dependence on Monsoons:
- Reduces dependence on monsoons and mitigates the use of chemicals.
- Ensures alternative income even during poor monsoon conditions.
Challenges of Common Practice in India’s Carbon Markets
- Small and Fragmented Landholdings:
- Current global carbon standards primarily reflect large-scale agricultural practices.
- 86.1% of Indian farmers are small and marginal.
- Non-Systematic Agroforestry Practices: Farmers engage in agroforestry in a non-systematic, scattered manner.
- Lack of Additionality Criteria:
- Indian agroforestry practices may not meet additionality criteria.
- Perceived as “common” within the Indian context.
- Exclusion of Farmers:
- Excludes a large number of Indian farmers from ARR carbon finance projects.
- Denies them the opportunity to earn additional income.
- Issues with Global Carbon Finance Standards:
- Lack of India-centric standards.India’s agroforestry practices often fail to qualify under current global standards.
- Concept of “common practice” limits participation in carbon credit programs.
- Trees grown by Indian farmers as part of their agricultural systems may not be eligible for carbon credits.
Steps ahead
- Revising Standards: International carbon finance platforms should revise standards to better align with Indian agricultural realities.
- Reflecting Specific Conditions: International standards should evolve to reflect the specific conditions of the Indian subcontinent.
- Revising Common Practice Guidelines: Revise the ‘Common Practice’ guidelines to be more inclusive of Indian agroforestry practices.
Conclusion
While the current global carbon finance standards may not fully capture the unique potential of Indian agroforestry, it is imperative to recognize its significance in contributing to global climate mitigation efforts. By reconsidering the categorization of Indian agroforestry as a common practice and adapting standards to suit India’s specific conditions, the international community can unlock a vast reservoir of carbon sequestration potential. This not only benefits India but also contributes significantly to global environmental goals. The potential for an additional 2.5 billion tons of carbon dioxide equivalent sequestration by 2030 through Indian agroforestry underscores the urgent need for such a paradigm shift in international carbon markets.
Reference: TH
Related PYQ
What are the present challenges before crop diversification? How do emerging technologies provide an opportunity for crop diversification? [UPSC CSE – 2021 Mains]
Practice Question
Discuss the potential of carbon finance in incentivizing the adoption of Afforestation, Reforestation, and Revegetation (ARR) initiatives in India’s agroforestry sector. Examine the challenges and opportunities involved. [150 words]
Guidelines for Answering the Question
Introduction
- Briefly define carbon finance, ARR initiatives, and agroforestry.
- Highlight the importance of these initiatives for climate mitigation and sustainable development.
Body
- Potential of Carbon Finance:
- Explain how carbon finance can incentivize ARR initiatives.
- Discuss the mechanisms through which carbon credits can be generated and traded.
- Highlight the potential financial benefits for farmers and communities.
- Challenges in Implementation:
- Identify the key challenges in implementing carbon finance projects in the agroforestry sector.
- Discuss issues related to land tenure, measurement and verification, and market volatility.
- Opportunities and Recommendations:
- Explore the opportunities for scaling up ARR initiatives through carbon finance.
- Suggest recommendations for overcoming challenges and ensuring the effectiveness of carbon finance mechanisms.
Conclusion
- Summarize the key points and emphasize the importance of a well-designed carbon finance framework for promoting ARR initiatives in India’s agroforestry sector.