The Rajasthan Agriculture Department signed an agreement with IORA Ecological Solutions around March 20, 2026 to launch a carbon credit pilot project for farmers in the state. The initiative aims to create an Agricultural Land Management Carbon Project that enables farmers to earn additional income by sequestering carbon through sustainable agricultural practices such as cover cropping, reduced tillage, agroforestry, and organic matter enhancement. The pilot was highlighted by Rajasthan Agriculture Minister Kirori Lal Meena.

Under the programme, farmers who adopt verified climate-positive practices can earn carbon credits that can be sold in voluntary carbon markets, currently valued at approximately $32–38 per tonne. The Union Budget 2026 had earlier allocated ₹20,000 crore for a national carbon credit programme for farmers, and this Rajasthan pilot aligns with that national framework. Given that Rajasthan has approximately 7.5 million farmer households and faces acute challenges from desertification, land degradation, and erratic rainfall, carbon credit schemes provide dual benefits — a supplementary income source and incentivisation for sustainable land use. The initiative also dovetails with India's commitments under its Nationally Determined Contributions (NDCs) to the Paris Agreement.