Context:
Uttar Pradesh became the first state to give money to farmers through carbon credit.
- Efforts are being made to enhance greenery and boost farmers’ income through carbon credits.
- By 2026, 25,140 farmers in six divisions (Gorakhpur, Lucknow, Bareilly, Meerut, Moradabad and Saharanpur) of the state are expected to receive Rs 202 crore from 42,19,369 carbon credits.
- Farmers will earn six US dollars per carbon credit every five years.
- A MoU has been done between the UP government and The Energy and Resources Institute (TERI) to increase the income of farmers through carbon credits in the first phase.
- In the second phase, seven divisions—Devipatan, Ayodhya, Jhansi, Mirzapur, Kanpur, Varanasi, and Aligarh—are selected. The third phase aims to cover the entire state under carbon financing.
- TERI will survey the trees planted by the farmers and provide them carbon credits.
- The government of India has announced that make the country zero carbon emissions by the year 2070.
- The carbon credit scheme, alongside promoting agroforestry, is vital in doubling farmers’ income.
- In 2014, India became the first country to implement an agroforestry policy to promote employment, productivity, and environmental conservation.
- Agroforestry or tree-based farming is a nature-based activity to nurture carbon-neutral growth.
- The carbon credit earned from agroforestry is sold at a price determined according to the social impact of the particular project.
About Carbon Credit
- Carbon credits are permits that allow the emission of one ton of carbon dioxide or an equivalent amount of other greenhouse gases. They are also known as carbon allowances.
- Carbon credits were created to reduce greenhouse gas emissions by providing companies with a set number of credits that decline over time.
- Companies can sell excess credits, creating a financial incentive to reduce emissions.
- Based on the cap-and-trade model used for sulfur pollution in the 1990s, negotiators at the Glasgow COP26 summit in November 2021 agreed to establish a global carbon credit offset market.