Last Updated: 20 August 2024
Programme to PAY farmers for planting trees on their agricultural land
Punjab is country's 1st state to launch the carbon credit scheme. Its Forest Department, in collaboration with The Energy and Source Institute (TERI), has launched a pioneering carbon credit compensation programme for Punjab's farmers[1][2]
Farmer Earns, Polluting Industry PAYs
-- 3686 farmers who have registered will get Payment of Rs 45 crore in 4 installments[2:1]
-- 1st Installment: Punjab farmers given Rs 1.75 crore on Aug'24[1:1]
¶ Key Features[1:2][2:2]
1. Compensation Structure
- Farmers receive payments in 4 installments over 5 years
- Aug'24: The 1st installment of Rs 1.75 crore was distributed to 818 farmers in Hoshiarpur
2. Tree Maintenance Requirements
- Farmers must maintain the trees for at least 5 years
- After 5 years, farmers can sell the mature trees
3. Verification & Calculations
- Teams from the international company and TERI visit the farms to inspect
- Verified Emission Reductions (VER) is measured to calculate compensation based on the quality and duration of the trees
¶ Benefits of the programme[1:3]
1. Environmental Impact
- The programme helps reduce carbon emissions and pollution
- It promotes agro-forestry, which requires fewer pesticides and fertilizers compared to traditional crops
2. Economic Benefits
- Farmers receive regular income through carbon credit payments
- They can earn additional income by selling mature trees after five years
3. Agricultural Advantages
- Agro-forestry improves soil quality and requires less water and labor compared to traditional farming
- Inter-cropping during the initial years provides farmers with immediate agricultural benefits
- Agro-forestry requires 80-90% less pesticides, insecticides, and fertilizers compared to traditional crops
- Water consumption in Agro-forestry is less than 20% of that required for paddy. After 2-3 years, the trees primarily rely on rainwater
- Agro-forestry requires less labor as well
¶ What is Carbon Credit scheme?[2:3][3]
- Based on ‘Polluter Pays Principle’ where polluters compensate the organisations and farmers working to reduce carbon emissions
- The farmers registered with the programme could earn carbon credits based on carbon reducing initiatives
- Carbon credits from farmers can be purchased by those industries, especially aviation, mining or manufacturers of fertiliser, who are not in a position to reduce their carbon footprints
References:
https://indianexpress.com/article/cities/chandigarh/in-a-first-punjab-farmers-take-home-cheque-worth-rs-1-75-cr-as-carbon-credit-compensation-9499609/ ↩︎ ↩︎ ↩︎ ↩︎
https://thenewsmill.com/2024/08/punjab-cm-mann-exhorts-people-to-transform-plantation-drives-into-mass-movement-launches-carbon-credit-scheme-worth-rs-45-crore/ ↩︎ ↩︎ ↩︎ ↩︎
https://www.financialexpress.com/policy/economy-punjabnbspand-haryana-farmers-to-get-carbon-credit-for-sustainable-agri-practices-3397863/ ↩︎
