India has started paying farmers for soil carbon sequestration, a first for the country. The program rewards practices like no-till farming, cover cropping, and organic amendments that pull carbon into the ground. Payments are tied to verified carbon credits, giving farmers a new income stream while contributing to national climate goals. This move aligns with global trends where soil carbon is gaining traction as a credible removal pathway. The challenge lies in measurement and verification, since soil carbon changes are slow and variable. India's approach will be watched closely for how it handles baseline setting and monitoring. For carbon market participants, this signals expanding supply from agricultural projects. It also raises questions about permanence and reversal risk. If the payment structure holds up, it could incentivize wider adoption across smallholder farms, which would be a significant shift.
