Rajasthan Launches Agricultural Carbon Credit Pilot Project in Three Districts; Farmers to Earn Per-Hectare Carbon Finance
On March 18, 2026, Rajasthan Agriculture Minister Kirori Lal Meena announced a carbon credit pilot project — partnering with IORA Ecological Solutions — in Bansur (Kotputli-Behror), Mahuwa (Dausa), and Malpura (Tonk) districts, enabling farmers to earn per-hectare payments for climate-friendly farming practices under the Carbon Credit Trading Scheme, 2023.
Key Points for RAS
- On March 18, 2026, Rajasthan Agriculture Minister Kirori Lal Meena announced a carbon credit pilot project in three districts: Bansur (Kotputli-Behror), Mahuwa (Dausa), and Malpura (Tonk).
- The project is implemented in partnership with IORA Ecological Solutions, a climate-tech firm.
- Farmers adopting climate-friendly practices (e.g., conservation agriculture, soil carbon sequestration) will earn per-hectare payments through carbon credits.
- The scheme operates under the Carbon Credit Trading Scheme, 2023, India's framework for voluntary and regulated carbon markets.
- Rajasthan is one of the first Indian states to integrate agricultural carbon finance into a state-level pilot at this scale.
- The initiative supports India's Nationally Determined Contributions (NDCs) under the Paris Agreement, targeting reduced emissions from the agriculture sector.
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On March 18, 2026, Rajasthan's Agriculture Department signed an agreement with IORA Ecological Solutions to implement an 'Agricultural Land Management Carbon Project', announced by Agriculture Minister Kirori Lal Meena. The pilot project will be implemented in three districts: Bansur block (Kotputli-Behror district), Mahuwa block (Dausa district), and Malpura block (Tonk district).
Under the scheme, farmers adopting climate-friendly agricultural practices will be eligible to earn carbon credits, and will receive per-hectare payments based on the quantum of carbon emission reductions they achieve. Eligible practices include tree plantation, micro-irrigation, installation of farm ponds and solar pumps, fertiliser management, crop residue management, soil carbon enhancement, and rotational livestock grazing.
The project is aligned with the Carbon Credit Trading Scheme, 2023 — India's national framework for market-based carbon finance — which enables stakeholders to earn Carbon Credit Certificates (CCCs) traded on energy exchanges. The scheme also connects with the Union Budget 2026–27's allocation of ₹20,000 crore for a national carbon credit programme.
This initiative is significant for Rajasthan, which faces water scarcity, desertification, and climate-induced agricultural stress. By integrating farmers into carbon markets, the project provides supplementary income to smallholder farmers, promotes soil health, reduces dependence on chemical fertilisers, and advances Rajasthan's climate resilience goals. The Kotputli-Behror district, carved out in 2023, is one of Rajasthan's newer districts with a significant rural farming base.
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See current-affairs packFrequently Asked Questions
1 What is the Rajasthan Agricultural Carbon Credit Pilot Project announced in March 2026?
On March 18, 2026, Rajasthan Agriculture Minister Kirori Lal Meena announced a carbon credit pilot project in three districts — Bansur (Kotputli-Behror), Mahuwa (Dausa), and Malpura (Tonk) — implemented in partnership with IORA Ecological Solutions. Under this pilot, farmers who adopt climate-friendly practices such as conservation agriculture and soil carbon sequestration earn per-hectare payments through carbon credits under the Carbon Credit Trading Scheme, 2023.
2 What is the Carbon Credit Trading Scheme, 2023 and how does it apply to agriculture?
The Carbon Credit Trading Scheme, 2023 is India's regulatory framework for voluntary and regulated carbon markets, enabling entities to earn tradeable carbon credits for verified emission reductions or carbon sequestration. In agriculture, farmers who adopt practices that reduce greenhouse gas emissions or sequester carbon in soil can earn credits, which are then sold through the carbon market to generate income.
3 Which three districts in Rajasthan are covered under the carbon credit agricultural pilot?
The three districts covered under Rajasthan's agricultural carbon credit pilot are: Bansur in Kotputli-Behror district, Mahuwa in Dausa district, and Malpura in Tonk district. These were selected as representative zones for piloting climate-smart agricultural finance at the state level.
4 What is IORA Ecological Solutions and what role does it play in this project?
IORA Ecological Solutions is a climate-tech firm that specializes in nature-based solutions and carbon markets. In the Rajasthan pilot, IORA is the implementing partner responsible for designing the methodology for measuring farmer-level carbon outcomes, verifying emissions reductions, and facilitating the issuance of carbon credits to eligible farmers.
5 How does Rajasthan's agricultural carbon credit initiative support India's climate commitments?
India's Nationally Determined Contributions (NDCs) under the Paris Agreement include targets for reducing emission intensity of GDP and increasing forest and tree cover as carbon sinks. The Rajasthan pilot directly supports the agriculture sector's contribution to these NDCs by incentivising farmers to reduce emissions and sequester carbon, while also generating additional income — making climate action economically viable for small farmers.
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