In a remarkable initiative, the Uttar Pradesh government is boosting farmers’ incomes through ‘carbon finance,’ encouraging them to participate in this plantation drive.

The state is set to break records by planting 36.50 crore saplings on July 20.

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As part of the Centre’s ambitious goal to achieve net-zero carbon emissions by 2070, farmers will gain additional income from carbon credits by planting fast-growing trees such as Poplar, Melia, Dubia, and Semal. These carbon credits will be purchased every five years at a rate of six US dollars per credit, officials here on Monday said.

The trees planted under this initiative will provide farmers with additional income. The state government will give benefits to farmers through incentives for this purpose. The Chief Minister has also instructed that the promotion of carbon finance should reach as many farmers as possible.

In a recent high-level meeting, Chief Minister Yogi Adityanath had ordered that farmers should be provided with these benefits immediately.

Sources said in the first phase, farmers from six divisions of UP will benefit from carbon credits.
For the first phase, Gorakhpur, Lucknow, Bareilly, Meerut, Moradabad, and Saharanpur districts have been selected. The Energy and Resources Institute (TERI) and VNV Advisory Services are assisting in this process.

Officials said between 2024 and 2026, farmers will receive incentives totalling Rs 202 crore. In the first phase, 2,406 farmers from Gorakhpur will receive Rs 34.66 crore, 4,500 ryots in Bareilly will receive Rs 24.84 crore, 2,512 farmers in Lucknow will receive Rs 21.26 crore, 3,754 farmers in Meerut will receive Rs 21.67 crore, 4,697 farmers in Moradabad will receive Rs 38.05 crore, and 7,271 farmers in Saharanpur division will receive Rs 61.52 crore.

In total, 25,140 farmers will benefit with Rs 202 crore. In the first phase, Rs 50 lakh obtained from carbon credits will be distributed to 100 selected farmers in the Gorakhpur division.

Every fifth year, the rate will be six dollars per carbon credit. The estimated carbon credits will be 42,19,369. In the second phase, seven divisions—Devipatan, Ayodhya, Jhansi, Mirzapur, Kanpur, Varanasi, and Aligarh—have been selected. In the third phase, the entire state is proposed to be covered under carbon financing.

Carbon financing is an innovative financial instrument that assigns a monetary value to carbon emissions. It provides businesses, looking to offset their emissions, with a tradable permit through carbon credits.

A carbon credit allows its holder to emit one tonne of carbon dioxide or an equivalent amount of other greenhouse gases. In the context of farmers, it targets the reduction in carbon emissions achieved through the trees they plant. Farmers are given carbon credits for each tonne of carbon dioxide emissions they prevent, providing them with financial benefits as an incentive.