Developing Voluntary Carbon Fund for agriculture sector in India within NABARD
| Project's full title | Developing Voluntary Carbon Fund for agriculture sector in India within NABARD |
|---|---|
| Country | India |
| Start date | 01/12/2024 |
| End date | 30/11/2026 |
| Status | Ongoing |
| Project Code | TCP/IND/4002 |
| Objective / Goal |
Objectives: To support NABARD in establishing and operationalizing a Voluntary Carbon Fund that promotes climate-resilient and sustainable agricultural practices across India’s agricultural value chains. Description: India is making strides in aligning its expansive agricultural sector to become climate-resilient by leveraging robust policies under the National Mission of Sustainable Agriculture designed to promote sustainable agriculture practices and build adaptive capacities of farmers. The country acknowledges the importance of establishing a strong financial framework that incentivizes farmers and value chain actors to implement climate resilient agriculture that will protect the most vulnerable through appropriate investments focused on adaptation, thereby enhancing resilience. By adopting innovative financing solutions, India aims to empower its agricultural sector to play a critical role in climate action, supporting both environmental sustainability and the resilience of its farmers. Ministry of Agriculture and Farmers Welfare and NABARD have an ongoing collaboration for the implementation of the Framework of Voluntary Carbon Markets in Agriculture Sector. In January 2024, NABARD signed an MoU with Ministry of Agriculture to take forward this initiative. The proposed Voluntary Carbon Fund at NABARD seeks to establish a dedicated financial resource to promote sustainable agricultural practices and climate resilient agriculture across the value chain. FAO will play a crucial supporting role in this initiative by providing technical assistance and expertise to the National Bank for Agriculture and Rural Development (NABARD), which will be the principal actor in establishing the Voluntary Carbon Fund. The financing of technical support will enhance opportunities for smallholder farmers to participate actively in the voluntary carbon market. This, in turn, will lead to significant environmental benefits, such as reduced emissions and enhanced carbon sinks, while also contributing to sustainable development and improved livelihoods in rural areas. The project is undertaken in collaboration with the Ministry of Agriculture and Farmers Welfare, Government of India, and NABARD. Donor: FAO Regular Programme Budget Expected Outputs:
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