At a time when adverse impacts of climate change on agriculture are apparent, a new carbon finance platform promotes climate resilient agriculture in Jharkhand and helps farmers access climate finance.
Climate change is severely affecting Indian agriculture in terms of productivity as well as the quality of produce. Without adaptation and mitigation activities, the current agricultural fields may lose their production potential.
Jharkhand too is badly affected by the climate crisis. Multiple studies have highlighted the state’s precarious situation due to its high climate sensitivity and vulnerability.
Smallholder farmers are particularly vulnerable due to their low adaptation capacity, limited resource and significant exposure to climatic risks.
Intellecap – an advisory services company, and Transform Rural India Foundation (TRIF) have developed a climate action platform for agriculture and allied sectors. This will help farmers access climate finance and also develop farmers’ technical skills through a training programme.
The platform was launched during a workshop in Ranchi on 13 December by Jitendra Kumar Singh, Director, Industry Department, Government of Jharkhand and B. Rajeshwari, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) Commissioner, Rural Development Department.
Multiple stakeholders including the government, farmer organisations, academic and research organisations, NGOs, and AgTechs, participated during the launch.
“The launch of this platform is an important milestone in our journey. We are now moving from a world of scientific warning to the real world where the impact of climate change is being felt by all,” said Anish Kumar, Managing Director of TRIF.
During the launch workshop, participants discussed about climate resilient agriculture and the role Intellecap-TRIF platform can play. They deliberated on how the potential of climate resilient agricultural practices can truly be realised.
“The platform’s launch in Jharkhand is a landmark event and there are many lessons to be learned from the tribal communities to find the best ways to mitigate wastage of our natural resources,” said Rajeshwari.
Many agricultural and forestry practices emit greenhouse gases (GHGs) into the atmosphere. While agriculture is a contributor to climate change in many ways, it also has the potential to check climate change.
Carbon is a valuable economic commodity. While there are several efforts underway to reduce carbon emissions, in the carbon trade model an agreement is made between a buyer and a seller of carbon credits. Those who reduce their emissions or sequester carbon, receive payments whereas those who have to decrease emissions can buy carbon credits to offset their emissions.
Carbon finance refers to the way one can make money in carbon markets by using carbon credits.
The objective of this initiative is to help Indian smallholder farmers in utilising carbon finance for sustainable agroforestry, climate smart agriculture and other carbon sequestration measures.
The initiative will support government, corporate companies and civil society institutions by providing them a way to leverage carbon finance for their work programmes.
“Farmers are the victims of climate change and also the solutions,” said Santosh Singh, Partner and Managing Director at Intellecap.
The platform will empower farmers by:
The platform will help smallholder farmers earn money by selling carbon credits through an independent carbon crediting mechanism in the voluntary carbon market.
By 2050, the market for voluntary carbon emissions is expected to be worth $200 billion.
“The platform aims to help farmers to utilise climate and carbon finance for sustainable agro-forestry. It will also support smallholder farmers, corporates and civil society institutions by providing them a way to leverage carbon finance for their work programmes,” Singh added.
The launch workshop witnessed the presence of private sector funders like Aavishkar Capital and Shakti Sustainable Energy Foundation, who support various climate resilient activities.
“The role of capital providers, specifically the corporates who either purchase carbon credits or provide pre-finance are crucial” said M Sancahayan Chakraborty, Partner, Aavishkaar Capital.
The initiative leverages different kinds of climate finance mechanisms, including the voluntary carbon market, to raise resources and support the farmers implement climate resilient practices.
By providing them with financial and technical support during the initial years, this initiative will make them self-sustainable to carry out climate mitigation and adaptation practices.
Lead image courtesy Miha Creative.
