Amazon signs US$30M carbon credit deal with Indian rice farmers
The agreement marks one of the largest agriculture-based carbon credit deals and highlights growing interest from tech firms in farm-linked climate action.
INDIA – Amazon has signed a US$30 million agreement to buy carbon credits from Indian rice farmers through the Good Rice Alliance, marking one of the largest deals of its kind in agriculture.
The Good Rice Alliance brings together Bayer, GenZero, and Shell Nature-Based Solutions. The group works with more than 13,000 smallholder farmers across 35,000 hectares in India. It supports farmers to shift to better rice growing methods that lower methane emissions.
The deal will cover over 685,000 metric tonnes of carbon dioxide equivalent credits during the first phase. Amazon will use these credits to offset part of its global emissions as it works toward its net zero targets.
Rice farming remains a major source of methane, a gas that heats the planet at a much higher rate than carbon dioxide. Traditional methods rely on flooded fields, which drive about 8 to 10 percent of global methane emissions. India stands as the largest producer of rice and ranks among the top methane emitters.
The programme encourages farmers to adopt practices such as alternate wetting and drying and direct seeded rice. These methods reduce water use and cut methane release.
The alliance also provides training, field support, and financial incentives to farmers who take part.
Large technology firms continue to invest in carbon credits as they manage their emissions. Microsoft recently signed a soil carbon deal valued between US$171 million and US$228 million.
Meta also agreed to a forestry credit deal worth up to US$16 million. Shell remains one of the biggest buyers of carbon credits by volume.
India is also moving closer to launching its first carbon trading programme. The system will track emissions from industries that take part. At present, most carbon credit trading in the country happens on a voluntary basis.
This deal signals a shift as more companies look beyond energy projects and turn to agriculture for carbon credits.
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