Enhancing Farmers' Income Through Carbon Credits | 24 Jul 2024

Why in News?

The Uttar Pradesh Government aimed to boost farmers' income through carbon credits by encouraging participation in a massive plantation drive on July 20, during which 35.5 crore trees were planted..

Key Points

• Carbon Credits: Farmers receive carbon credits based on the reduction in carbon emissions achieved through the trees they plant. For every ton of carbon dioxide emissions prevented, they earn financial benefits as an incentive.
  • One carbon credit typically represents one ton of carbon dioxide equivalent (CO2e) that has been reduced, removed, or offset from the atmosphere.
• Tree Types: Planting fast-growing trees like poplar, melia, dubia, and semal allows farmers to earn additional income from carbon credits.
• Credit Purchase: These carbon credits are purchased every five years at a rate of six US dollars per credit.
• Beneficiaries: In the first phase, farmers from six divisions Gorakhpur, Lucknow, Bareilly, Meerut, Moradabad, and Saharanpur will benefit from carbon credits.
• Incentives: Between 2024 and 2026, 25,140 farmers will receive incentives worth Rs 202 crore.
• Division-wise Distribution:
  • Gorakhpur: 2,406 farmers will receive Rs 34.66 crore.
  • Bareilly: 4,500 farmers will receive Rs 24.84 crore.
  • Lucknow: 2,512 farmers will receive Rs 21.26 crore.
  • Meerut: 3,754 farmers will receive Rs 21.67 crore.
  • Moradabad: 4,697 farmers will receive Rs 38.05 crore.
  • Saharanpur: 7,271 farmers will receive Rs 61.52 crore.
• Estimated Carbon Credits: A total of 42,19,369 carbon credits are expected.
• Future Phases: The second phase will cover seven more divisions, and the third phase aims to include the entire state under carbon financing.
  • In the second phase, seven divisions, Devipatan, Ayodhya, Jhansi, Mirzapur, Kanpur, Varanasi, and Aligarh will be included. 
  • The third phase aims to cover the entire state with carbon financing.
• Carbon financing assigns a monetary value to carbon emissions.