The Government of Uttar Pradesh launched an agroforestry project to link farming with the global carbon credit market. In this article, you can read all about this new project of the UP government and how it can benefit the farmers of the state. This topic is relevant for the IAS exam environment, economy and agriculture segments.
Uttar Pradesh Govt Scheme Linking Farming with Global Carbon Credit Market
- The government of Uttar Pradesh, in association with The Energy and Resource Institute (TERI), is launching 6 agroforestry-based carbon finance projects.
- Through these projects, the government aims to link farming with the global carbon credit market.
How will the new initiative work?
- The agroforestry project aims to promote wood lots as farm forestry and increase tree cover outside forest areas.
- This project is likely designed to help offset the carbon emissions produced by other industries by promoting the growth of trees and the absorption of carbon dioxide.
- The carbon credit earned from this project can then be sold to other industries as a way to offset their carbon emissions.
- The projected yield of the agroforestry carbon finance initiative is 4.5 million carbon credits, which, when valued at $6 per credit, would amount to a total income of Rs 230 crore for the current project.
Benefit for Farmers:
- By participating in agroforestry and selling carbon credits, farmers can earn additional income while also contributing to climate change mitigation efforts.
- Additionally, agroforestry provides a sustainable source of raw materials for industries like wood and paper, which can help reduce the pressure on natural forests.
What is Carbon Credit?
- It is a permit that allows the holder to emit a certain amount of carbon dioxide or other greenhouse gases into the atmosphere.
- One carbon credit is equivalent to one ton of greenhouse gas.
Global Carbon Credit Market
- It is a system or market where companies and investors can buy and sell carbon credits.
- The market is designed to help reduce greenhouse gas emissions and mitigate climate change by creating financial incentives for companies to reduce their emissions.
- Companies that emit less than their allotted amount of greenhouse gases can sell their unused carbon credits to other companies that emit more than their allotted amount.
- The global market for carbon credits had a value of $760 billion in 2021 and is anticipated to reach an impressive $2.68 trillion by 2028.
- With a contribution of 278 million credits to the voluntary carbon markets between 2010 and 2022, India has emerged as a major exporter of carbon credits, accounting for 17% of the global supply.
Polluter pays principle:
- Carbon finance work involves the idea that industries that produce carbon emissions (or “polluters”) should be responsible for paying for the environmental impact of their actions. This is known as the “polluter pays principle”.
- In this system, polluting industries can buy carbon credits, which are essentially units of carbon reduction that can be traded on carbon markets.
What is Agroforestry?
- It is a type of agriculture that involves growing trees and other vegetation alongside crops and/or livestock.Â
- Agroforestry can be used in a wide range of settings, from small-scale subsistence farming to large commercial operations, and can be adapted to different ecological and socio-economic conditions.
- India and Agroforestry:
- India has adopted an agroforestry policy to promote employment, productivity, and environmental conservation.
- The state of Uttar Pradesh is aiming to increase its green cover from 9.23% to 15% by 2026-27 through the planting of 1.75 billion trees and the promotion of agroforestry among farmers.
- Benefits of agroforestry:
- Climate change mitigation:
- Trees sequester carbon dioxide from the atmosphere, helping to mitigate climate change.
- Agroforestry can also reduce greenhouse gas emissions by improving soil health and reducing the need for synthetic fertilisers.
- Biodiversity conservation:
- Agroforestry can increase the diversity of plant and animal species in an area, as it provides a range of habitats and food sources for wildlife.
- Soil health:
- Trees can help to improve soil health by reducing erosion, increasing soil organic matter, and improving nutrient cycling.
- Water management:
- Agroforestry can improve water management by reducing water runoff and increasing water infiltration, which can help to reduce soil erosion and improve water quality.
- Economic benefits:
- Agroforestry can provide farmers with additional sources of income through the sale of timber, fruits, nuts, and other non-timber forest products.
- Social benefits:
- Agroforestry can provide social benefits, such as improved food security, increased resilience to climate change, and enhanced community cohesion.
- Climate change mitigation:
Farming Linked with Global Carbon Credit Market in Uttar Pradesh:- Download PDF Here
| Related Links | |||
| Carbon Price | Carbon Sequestration | ||
| UNFCCC | Environment conventions and protocols | ||
| Carbon tax | UPSC Environment and Ecology | ||
Comments