Carbon Credits and Farmers
Tree projects can earn carbon credits, but only through projects that follow an approved methodology, group many farms together and are independently verified, which usually takes several years after planting. In Grow Billion Trees programmes, farmers do not receive carbon income: they earn from the fruit and timber their trees produce, and keep that income.
How tree carbon credits work
- One carbon credit equals one tonne of CO₂ equivalent removed or reduced.
- Tree projects follow methodologies such as Verra VM0047 or Gold Standard afforestation rules.
- Measuring and verifying a single small farm is costly, so projects group many farms together.
- India's Indian Carbon Market includes an offset mechanism for projects outside the obligated industries.
- Credits are issued only after trees have grown and been verified, usually several years after planting.
Sources: Verra: VM0047 Afforestation, Reforestation and Revegetation; Gold Standard: Afforestation/Reforestation requirements; Bureau of Energy Efficiency: Indian Carbon Market
Before you sign a carbon offer
- Who owns the carbon?: Ask in writing who owns the trees, the carbon rights and any credits, and for how many years.
- What exactly will you be paid?: Be careful of promises of quick or fixed carbon money; credits take years and prices change.
- What do you have to do?: Carbon projects can require trees to stay standing for many years, with limits on cutting.
- Who verifies it?: Real credits need an approved methodology and an independent verifier.
How a tree carbon project works
- Project design: An approved methodology and many farms grouped together.
- Plant and record: Every tree is geo-tagged at planting.
- Grow and care: Trees are cared for and checked each season.
- Verify: An independent verifier checks the carbon stored.
- Issue credits: Credits are issued on a registry and can then be sold.
Frequently asked questions
Do farmers in Grow Billion Trees programmes earn carbon income?
No. In our programmes, trees are funded by companies through CSR, and farmers earn from the fruit and timber their trees produce. They keep that income.
Can farmers earn carbon credits from trees in India?
It is possible through grouped projects that follow an approved methodology and are independently verified, but credits take several years and the income depends on the project agreement.
How long does it take to get carbon credits from trees?
Usually several years, because the trees must grow and be verified before any credits are issued.
Is a carbon offer that promises quick money real?
Be careful. Real tree carbon credits take years to be issued and their price changes; ask for the terms in writing before you sign.
What is the price of one carbon credit?
Prices vary by project type. See our carbon credit rate guide for current published averages.
