“This groundbreaking framework has opened new horizons for smallholder farmers. By connecting agriculture to carbon markets, we’re not just fighting climate change – we’re transforming rural economies.” — Dr. Rajesh Kumar, Senior Agricultural Policy Advisor, Indian Government

The Opportunity

In India, where 90% of farmers are smallholders, carbon markets present an unprecedented opportunity to:

• Finance sustainable agricultural practices
• Generate additional revenue streams for farmers
• Scale climate-smart solutions
• Drive rural development

The Challenge

The Asian Development Bank (ADB) faced a complex mission:

• Bridge the gap between global carbon markets and local farmers
• Design scalable solutions for millions of smallholders
• Ensure fair value distribution
• Create a replicable framework for other markets

Our Strategic Approach

1. Multi-Stakeholder Intelligence Gathering

• Conducted comprehensive market analysis
• Interviewed key carbon market players:
  • Public carbon project developers
  • Carbon engineering companies
  • Independent experts
  • Platform developers
  • Carbon standard organizations

2. Framework Development

• Created clear regulatory guidelines
• Designed innovative blended finance solutions
• Established public-private partnership models
• Developed scalable implementation strategies

3. Government Integration

Defined clear governmental roles as:

• Market Regulator
• Program Promoter
• Project Developer
• Implementation Facilitator
• Finance Catalyst

Innovative Solutions Delivered

1. Regulatory Framework
   • Clear carbon credit ownership rules
   • Risk mitigation mechanisms
   • Social and environmental safeguards
2. Implementation Structure
   • Multi-stakeholder coalition platform
   • Technical assistance facility
   • Capacity building program
3. Financial Architecture
   • Blended finance mechanisms
   • Public-private funding models
   • Risk-sharing arrangements

Impact Potential

✓ Access to global carbon markets for 140M smallholders

✓ New revenue streams for rural communities

✓ Scaled adoption of climate-smart practices

✓ Replicable model for other developing nations

✓ Strengthened agricultural supply chains

Strategic Value

This initiative delivers:

• Market-based climate solutions
• Rural economic development
• Supply chain resilience
• Policy innovation
• Scalable implementation framework

Path Forward

• Coalition building with key stakeholders
• Technical assistance program launch
• Pilot project implementation
• Framework refinement
• Regional expansion planning

Partner with us to unlock sustainable finance solutions in agricultural value chains.

Contact us at contact@ksapa.org

Links

Raphael HARA sur LinkedIn : Carbon Initiative Scoping Study – Results Presentation