As climate change increasingly impacts agriculture, farmers are exploring innovative ways to make their operations more sustainable while also generating additional income. One solution gaining traction is the use of carbon credits, certificates that represent a tonne of carbon dioxide removed from or prevented from entering the atmosphere.
While the concept may seem complex, it offers practical opportunities for farmers to adopt regenerative practices, improve soil health, reduce emissions, and potentially benefit financially. Matthew Kensett, specialised agri-solutions and intelligence lead at UPL Africa, explains how carbon credits work, how farmers can participate, and the benefits these programmes can offer to both the environment and the farming community.
Understanding the climate challenge facing agriculture
Kensett explains that the sector is grappling with increasingly unpredictable weather systems that disrupt historically reliable production patterns.
He notes that greenhouse gas emissions, largely driven by energy production and economic activity, are the primary driver of climate instability.
“We have gotten ourselves to a point where we’re putting too much greenhouse gases or carbon dioxide into the atmosphere. That is changing our climate,” he says.
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Agriculture occupies a distinctive position within nature-based solutions, as it simultaneously contributes to greenhouse gas emissions while also playing a vital role in removing carbon from the atmosphere and storing it in soils as a natural carbon sink.
Through improved land management and regenerative practices, farming systems can actively remove carbon dioxide from the atmosphere and store it in soils as soil organic carbon.
What exactly is a carbon credit?
At its core, a carbon credit is a measurable unit linked to climate change mitigation.
“A carbon credit is essentially a certificate which represents one tonne of carbon dioxide that has either been stopped from going into the atmosphere in the first place or removed from the atmosphere,” Kensett says. Each credit always represents the same quantity.
One carbon credit represents one metric tonne of carbon dioxide or an equivalent greenhouse gas. These credits are created through projects that either cut emissions or remove carbon from the atmosphere, giving companies a way to offset emissions they are currently unable to eliminate.
How agriculture generates carbon credits
In practical terms, carbon credits in agriculture are generated in two main ways:
- Reducing on-farm emissions – “Any activity which helps a farmer reduce their on-farm emissions,” Kensett explains.
- Removing and storing carbon – “Activities which a farmer can adopt whereby they remove carbon dioxide from the atmosphere and store it in their soils.”
Examples include optimising fertiliser use, reducing fuel consumption, introducing cover crops and transitioning towards regenerative agricultural practices that build soil health.
Eligibility and regulation
Carbon credits are tightly regulated to ensure credibility. Kensett highlighted the importance of recognised standards.
“Carbon credits need to be verified and issued by a reputable carbon credit standard, most notably around the world is an organisation called VERA, which has a programme called the Verified Carbon Standard,” he says.
To qualify, farmers generally need to demonstrate a transition away from conventional farming systems that rely on soil tillage, monocropping and high levels of chemical inputs. Participation further requires a willingness to adopt new agricultural practices or to meaningfully improve and refine existing ones.
You have to be in for the long haul
Accurate data underpins the entire carbon credit process. “We need data as well as historical farm management records that go back at least three years,” he says.
This information is used to establish a baseline that serves as the reference point for measuring future improvements and calculating carbon credits. Equally critical, Kensett notes, is a long-term commitment from the farmer, typically over a decade, as short-term participation followed by a return to previous practices can result in carbon reversals and invalidate the credits generated.
Advice to farmers considering carbon credits
Kensett acknowledged farmer scepticism and complexity: “What we’re asking of farmers to transition to more sustainable farming is incredibly complex. It’s easier said than done.”
His advice is to start small and build confidence.
“We discourage going from zero to hero in one season. That is risky,” he says. Instead, pilots and phased adoption help minimise risk, allowing farmers to start small and test what works best on their land. Ultimately, carbon credit programmes are designed to act as a support mechanism, incentivising improved outcomes for both farmers and the environment.
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