The market is expected to reach $50 billion by 2030
indigo farming announced last week the completion of production of the first crop of large-scale generated ledger-issued, verified agricultural carbon credits. The credits will be officially issued by the Climate Action Reserve in the coming days.
Indigo’s Carbon Farming Program makes agricultural carbon credits a new global revenue stream for farmers and a credible, nature-based climate solution for businesses. The issuance of approximately 20,000 credits by the Reserve is the first in a repeatable process aimed at producing the highest quality offsets among agricultural carbon farming programs – and part of a growing voluntary carbon market, according to experts, will reach 50 billion dollars by 2030, Indigo said in a press release. Release.
While emerging carbon removal technologies face challenges in immediately and large-scale removing greenhouse gases to the extent necessary to limit global warming below 1.5 degrees Celsius, solutions based on nature are uniquely positioned to help bridge this gap. Agriculture has historically produced less than 1% of voluntary carbon credits. Issuing these credits demonstrates how farmers can help realize an immediate, scalable and proven pathway to climate change mitigation in one of the world’s largest and most critical carbon sinks: soil.
In its press release, Indigo also announced that it had secured purchase commitments from the buyer at a price of $40/credit, a 100% increase since the program launched.
“It’s hard to overstate the importance of this milestone,” said Indigo CEO Ron Hovsepian. “For the first time ever, we have been able to measure and verify, on an unprecedented commercial scale, farmers’ carbon removal and reduction efforts. This publication validates the role of agriculture in meeting the world’s urgent need sustainability and climate solutions that Indigo’s network of farmers, soil scientists, buyers and partners have worked tirelessly to achieve.”
“This milestone is the result of a collaborative effort to create an innovative and robust solution for accurate and profitable credit generation in agriculture, creating a mechanism to catalyze and reward the adoption of sustainable agricultural practices,” said said Craig Ebert, president of the reserve. . “These credits are tangible proof that by voluntarily improving soil health and measuring their efforts with the highest degree of confidence, farmers are gaining a credible new source of income and benefiting from the massive global investment in carbon credits. needed to solve the climate crisis.”
To help farmers generate carbon credits to the industry’s highest quantification criteria, Indigo has implemented an innovative hybrid approach that combines soil sampling and modeling to generate credits at scale. These credits were then verified and issued by the Reserve for the exclusive use of Indigo’s global network of nearly 20 brands engaged in the purchase of credits. This first-ever large-scale production of verified, registry-issued agricultural carbon credits reflects the efforts of 175 farmers who have adopted climate-smart practices such as cover cropping and tillage strategies over more than one hundred thousand acres during the 2018-2020 growing seasons.
“Our goal as a farming family is to pass on a profitable operation to the next generation. The farm no longer looks the same as when my grandfather started it, and I see carbon credits as a new valuable option for us long term,” said Lance Unger, an Indiana farmer who has earned more than $26,000 in additional carbon credit revenue through the program. “Our soil can produce carbon credits every year. And the more companies that focus on carbon neutrality, the more valuable those carbon credits are – it’s basic supply and demand. When you add to that the agronomic and environmental benefits for us, including soil and plant health, it’s a win-win for everyone.”
Indigo now has nearly 2,000 participating farmers and nearly 5 million acres enrolled in its program. Indigo’s second credit issuance, scheduled for early next year, will be calculated based on farmers’ carbon efforts through 2021 and is expected to result in a credit harvest at least double the issue size announced last week.