In an effort to combat climate change and promote sustainable agricultural practices, AgriCarbon at Anthesis is launching a groundbreaking carbon credit programme aimed at incentivising South African farmers.
Pieter van Niekerk, the principal sales manager for AgriCarbon, shared insights into the programme’s methodology at Food For Mzansi’s recent Emergency Summit on Climate Change and Agriculture.
He said South Africa faces a pressing challenge in managing greenhouse gas emissions, ranking high among international emitters.
With government initiatives such as the local carbon tax, there is a unique opportunity for farmers to engage in carbon credit trading, which can help mitigate emissions while providing a financial incentive for adopting sustainable practices.
“Farmers can receive monetary incentives for implementing practices that reduce carbon emissions on their farms,” Van Niekerk explained.
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“The carbon tax creates a compliance market where companies can purchase carbon credits to offset their emissions, making it financially viable for farmers to participate.”
A growing market
The carbon credit market is expected to see an increase in prices over the next six to seven years, which presents a lucrative opportunity for farmers. Van Niekerk noted that, with limited carbon credits available locally, South Africa is well-positioned to attract international investment in carbon offset projects.
“We are working to develop projects that not only align with South African carbon tax regulations but also resonate with the global demand for nature-based solutions,” he noted.
“Our goal is to reach net-zero emissions by 2050, and engaging farmers in this process is essential.”
Understanding carbon credits
The concept of carbon credits can be complex and often misunderstood. Van Niekerk clarified that carbon credits are financial instruments created to incentivise reducing carbon emissions. By adopting practices that sequester carbon in the soil, farmers can generate these credits and sell them on the market.
“Carbon credits can be generated through two main approaches: reducing emissions and removing carbon from the atmosphere,” he stated.
“Agriculture plays a crucial role here, as soils can act as significant carbon sinks.”
AgriCarbon is currently piloting projects with 120 farmers across approximately 160 000 hectares.
These projects focus on implementing improved land management practices that enhance soil health and capture carbon. By collecting data on metrics such as soil disturbance, coverage, and crop rotation, AgriCarbon aims to quantify the carbon sequestered through these practices.
“The first round of monitoring has already identified 40 000 tonnes of carbon, translating to approximately 16 million Rand in value,” Van Niekerk shared. “This initiative is not just about carbon credits; it’s about fostering a culture of sustainability in farming.”
Van Niekerk stressed the importance of partnerships in the successful implementation of the programme. Collaborating with agricultural businesses and local experts helps facilitate data management and support farmers on the ground.
“To navigate the complexities of carbon credit generation, we work with trusted partners who understand the intricacies of farming,” he said. “This is a new industry, and it comes with challenges, but we are committed to supporting farmers every step of the way.”
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