How will farmers benefit from the carbon credit finance project?

By: Merikheti
Published on: 23-Dec-2023

The carbon credit finance project will help small farmers to get additional financial assistance from carbon markets and support the BHGY project to ensure frequent care of trees even after the time period. Transform Rural India (TRI) has unveiled the Carbon Credit Finance Project to provide benefit of more than Rs 1 lakh in Jharkhand, with the help of Intellecap and Acorn (Rabobank). This initiative targets all the farmers of the state who have been supported under the Birsa Gram Yojana since 2018. Their integration has been provided in the Robobank ACORN platform. Prominent women have planted fruit orchards and local wooden trees on more than 1 lakh acres of rural land with the support of the Jharkhand government under the Birsa Green Gram Yojana (BHGY) of MNREGA. For your information, these farmers will get the benefit of removing carbon in the next 15-20 years.


BHGY project initiative took place in Jharkhand

This project determines the continuous care of trees even after the support period of the BHGY project by collaborating in getting financial assistance to small farmers in addition to carbon markets. Remarkably, there is no risk for farmers or there is no necessary investment from them or the government. The design of the project started in December 2022 in collaboration with the implementation stakeholders in support of the Government of Jharkhand.


Also read: Under this scheme, financial assistance of Rs 3 thousand will be given to small and marginal farmers per month.


What has “Krishi and Climate", Managing Director of IntelCap, said about this?

Managing Director of IntelCap, Krishi and Climate, Santosh K. Singh said, "We are committed to increase the income of small farmers and convert them into climate smart farmers . Climate finance, mainly by supporting carbon finance, the project enables this change to profitable and climate flexible agricultural practices. We are also focusing on the ecosystem that is necessary to achieve it. Also, the stage works with government agencies, investors and corporates to help small farmers. "


Also read: Thousands of farmers will be benefited under the Chief Minister's Minor Irrigation Scheme.

This project has been set on the principle of proper payment to farmers, in which 80% of carbon credit revenue generated will be transferred directly to farmers' accounts. In addition to the carbon credit, the stakeholders will find a way to provide additional benefits to farmers through the Green Credit Platform of the Government of India and other global biodiversity platforms. The objective of the project is to determine proper maintenance of plantation, encourage the income of small farmers and generate local employment opportunities.