Markets in agriculture-based carbon offsets: current status and scaling challenges

Rohit Jindal

Chapter 16 in Handbook on Climate Change Impacts, Mitigation, and Adaptation in Agriculture, 2026, pp 381-398 from Edward Elgar Publishing

Abstract: Agriculture is a critical sector for climate change mitigation, yet its carbon offsets represent a small fraction of global carbon markets. This chapter conducts a comprehensive assessment of agriculture-based carbon offsets, addressing three interrelated questions: (i) the state of the market and recent trends, (ii) why agriculture-based offsets remain underrepresented despite high mitigation potential, and (iii) imperative strategies for scaling these initiatives. Based on a review of compliance and voluntary markets, the chapter finds that agriculture-based carbon offsets account for only 119.1 million tCO2-eq, far below the sector's technical mitigation potential of 900 million tCO2-eq per year. The limited scale is due to poor offset quality, high transaction costs, rigid project designs, smallholder constraints, and social inequities. The chapter proposes key strategies that can help address these challenges. Robust, credible, and inclusive agriculture-based carbon markets will be essential for achieving global climate goals while supporting smallholder livelihoods in developing countries.

Keywords: Climate Change; Carbon Markets; Smallholders; Carbon Standards; Transaction Costs (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035344963
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