Opinion India’s climate policy must not leave farmers behind

While these 14 technology-based activities — typically capital-intensive — are designed to promote the scaling up and diffusion of low-carbon technologies and enhance their financial viability through carbon revenues, it is inaccurate to suggest that they contribute more to emission reduction than nature-based solutions such as those within the AFOLU sectors.

Technology-based projects, with their high upfront costs, may benefit a few industrial players and investors through carbon trading. In contrast, AFOLU-based activities directly support communities, including smallholder farmers engaged in regenerative agriculture, agroforestry, and sustainable land use. Excluding AFOLU sectors contradicts the objectives of the Green India Mission under the National Action Plan on Climate Change (NAPCC) formulated by the Prime Minister’s Council on Climate Change.

It is also misleading to claim that carbon credits from technology-based projects fetch higher market prices than those from AFOLU or other nature-based solutions. Current market trends indicate that credits from AFOLU projects often command higher prices, as they deliver not only environmental but also social and economic benefits — particularly by improving rural livelihoods.

Similarly, the argument that including AFOLU activities could reduce buyer interest in higher-cost, technology-based credits is unfounded. The value of a carbon credit depends on its quality and compliance with international standards such as ICVCM (Integrity Council for the Voluntary Carbon Market) and VCMI (Voluntary Carbon Markets Integrity Initiative), not on whether it is technology- or nature-based. Indeed, AFOLU credits typically enjoy better pricing because they align closely with the UN Sustainable Development Goals (SDGs), providing long-term socio-economic and environmental co-benefits.

While the promotion of low-carbon technologies is important, it should not come at the expense of the AFOLU sectors. India’s response to the Paris Agreement should balance both technology- and nature-based solutions, which are complementary and equally essential for effective climate action.

It is particularly surprising that even the revised list of activities eligible under Article 6.2 of the Paris Agreement (vide Office Memorandum dated July 14, 2025) also excludes the AFOLU sectors — the backbone of India’s economy. This omission runs counter to the policy stance repeatedly articulated by the Prime Minister, who has consistently emphasised that farmers’ interests will not be compromised, including in complex trade negotiations with countries such as the US.

Despite the government’s commitment to protecting farmers’ welfare, AFOLU sectors have also been excluded from carbon trading under the recently established India-Japan Joint Crediting Mechanism (JCM) — a move that appears inconsistent with the government’s broader vision. India is negotiating similar JCMs with Singapore, South Korea, and other nations, and it is likely that AFOLU sectors will continue to be omitted from these future agreements as well — creating a significant policy gap in addressing climate change and enhancing livelihoods.

The NDAIAPA, which includes the Ministry of Agriculture and Farmers’ Welfare among its members, appears to have taken a position at odds with the Prime Minister and other senior ministers, including those of Commerce and External Affairs, who have reiterated India’s commitment to inclusive and sustainable climate action in multiple international fora.

As highlighted by the Prime Minister in his keynote address at the UN High-Level Dialogue on Desertification, Land Degradation and Drought on June 14, 2021, India’s Nationally Determined Contributions (NDCs) commit to creating an additional carbon sink of 2.5-3 billion tonnes of CO₂-equivalent by 2030 through restoration of degraded lands and sustainable land-use practices. This target cannot be achieved if AFOLU sectors — key contributors to carbon sequestration through afforestation, reforestation, and sustainable forest management — remain excluded.

Agriculture and forestry contribute nearly 16 to 19 per cent to India’s Gross Value Added (GVA) and employ nearly half of the country’s workforce, forming the backbone of food security, climate resilience, and rural prosperity. Forestry sustains the water cycle, mitigates climate change, and maintains the ecological balance essential for agriculture. It is vital that smallholder farmers and vulnerable communities — those most affected by climate change — are not excluded from benefiting under global mechanisms such as the Paris Agreement and bilateral partnerships like the JCM.

While private sector engagement through associations is welcome, it should not come at the expense of the AFOLU sectors, which lack strong lobbying platforms. Given the Prime Minister’s repeated emphasis on protecting farmers’ interests, AFOLU sectors must be included in Article 6 implementation and in future bilateral partnerships like the JCM. Doing so will strengthen India’s global leadership in inclusive and equitable climate action.

Moreover, excluding AFOLU sectors from Article 6.4 activities could disrupt ongoing UNFCCC-registered Clean Development Mechanism (CDM) projects that are transitioning to the Paris Agreement framework. Many of these projects, approved by India’s Designated National Authority, remain operational until 2035 and beyond. Without host-country approval for transition, their implementation will be jeopardised.

Including AFOLU in the list of greenhouse gas (GHG) mitigation activities will strengthen India’s efforts to achieve its NDCs and SDGs while mobilising international climate finance. Recognising the role of afforestation, land restoration, and sustainable land-use practices as key contributors to India’s climate goals will enable the development of robust implementation frameworks for AFOLU projects under Article 6.4, aligning national efforts with global best practices.

The MoEF&CC is urged to convene a meeting of the NDAIAPA to reconsider this matter in light of the commitments made by the Prime Minister and other ministers. Including AFOLU sectors in the implementation of Article 6 mechanisms, the JCM will uphold India’s vision of climate and social justice, ensuring protection of farmers’ interests and the livelihoods of vulnerable communities.

The writer, formerly of the Indian Forest Service, is President, VEDA Climate Change Solutions Ltd