A state in India, Gujarat and it’s forest department, has taken significant strides in the battle against climate change by inking 3 crucial Memorandums of Understanding (MoUs) worth Rs 2,217 crore or over US$266 million of carbon credits from planting mangroves. Deals have also been signed in the area of carbon credit through agroforestry.
The initiative, which is the first-of-its-kind in the country, is part of the upcoming 10th Vibrant Gujarat Global Summit. It’s a pioneering effort in India’s fight against the adversities of climate change.
Exploring Ways to Sequester Carbon
India had revealed its new climate change commitments to reduce emissions intensity of its GDP by 45% by 2030 from 2005 levels.
The country’s holistic approach to climate involves several things. Alongside the mangrove plantation deals, the forest department has also entered into agreements in agroforestry.
It showcases the state’s commitment to exploring different methods for carbon sequestration. This highlights the importance of promoting sustainable land use practices in the region.
In 2022, the world’s 3rd-largest emitter captured the carbon market spotlight with several climate action plans proposed. The country first planned to begin carbon trading for the heavy emitting sector, including energy, steel and cement. This is all part of India’s goal to hasten transition to cleaner energy and reach its 2070 net zero emissions.
In a parallel endeavour, beyond the MoUs, the Gujarat government is actively investigating carbon sequestration in wetlands. A study found that wetlands can store 81-216 metric tons of carbon per acre, depending on their type and location.
The Gujarat Ecological Education and Research (GEER) Foundation, an autonomous body affiliated with the forest department, is conducting a comprehensive carbon study at 4 Ramsar sites in the state: Nal Sarovar, Thol, Khijdia and Vadwana.
Ramsar sites refer to sites listed on the List of Wetlands of International Importance. India boasts a total of 75 Ramsar Sites, which altogether span an expansive 13,26,677 hectares.
Racing Towards Net Zero
Another remarkable event on the horizon is a dedicated conclave scheduled from January 10 to 12, focusing specifically on Dholera. It is a burgeoning greenfield smart city with a footprint of 920 square kilometers, 100 kms away from Ahmedabad city.
Dholera is the biggest of the 8th industrial greenfield cities under development in the 1st phase of the 100 billion-dollar project. The gathering aims to spotlight Dholera’s potential as a hub for smart businesses illustrated below.

Smart cities are now becoming a trend for countries to green the urban areas and businesses. In 2022, Saudi Arabia revealed its The Line, a zero-carbon city in NEOM. It’s 200 meters wide, but 170 kilometers long, and 500 meters above sea level.
The Gujarat Global Summit also includes a pivotal seminar entitled “Towards Net Zero” on January 12. The event aims to bring global and national leaders to discuss India’s pledge to fight climate change.
Principal Secretary (Forest and Environment) Sanjeev Kumar further noted that the aim of the seminar is for the participants to “share their views on net zero, decarbonization of the economy and carbon trading.”
Carbon credits, despite experiencing historic lows in terms of prices last year, are seen to play a crucial role in reducing harmful emissions. Not only India but also many other nations are strengthening their carbon credit markets to promote transparency and integrity.
African countries also find carbon credits a crucial tool in drawing in funding from rich nations. Several countries in the region have announced their major carbon credit deals and market schemes last year.
The strategic initiatives by the Gujarat government in carbon credits underscore its unwavering commitment to sustainable growth and development. The collective efforts align seamlessly with India’s overarching goals to mitigate climate change and propel economic progress in a sustainable direction.
The post Indian State Inks Three Deals Worth $266M in Carbon Credits appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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