Bayer launches first carbon credits from sustainable rice farming in India

In Southeast Asia, rice farming contributes between 25-33% of the region’s methane emissions.

INDIA – Bayer AG has announced the issuance of up to 250,000 tonnes of carbon dioxide equivalent (CO₂e) credits from its Bayer Rice Carbon Program in India, marking the company’s inaugural carbon credits from regenerative farming practices in Asia.

Rice cultivation is a significant contributor to global methane emissions, accounting for approximately 12% of these emissions.

In Southeast Asia, rice farming contributes between 25-33% of the region’s methane emissions. By promoting practices like DSR and AWD, Bayer’s program aims to transform rice cultivation into a more sustainable and environmentally friendly endeavor.​

These credits are currently undergoing validation and certification by Gold Standard, a leading registry in the voluntary carbon market, and will soon be available for purchase by climate-conscious companies aiming to support greenhouse gas (GHG) emission reductions and sustainable agriculture.

The Bayer Rice Carbon Program has been implemented across 11 Indian states over the past two years, enabling thousands of rice farmers to adopt climate-friendly techniques such as direct seeded rice (DSR) and alternate wetting and drying (AWD).

These practices significantly reduce methane emissions by limiting the duration that rice fields remain flooded, addressing a critical environmental concern since traditional flooded rice paddies are a major source of methane, a greenhouse gas approximately 28 times more potent than CO₂ over a 100-year period. ​

George Mazzella, Vice President of Ecosystem Services Business Development at Bayer’s Crop Science division, emphasized the program’s scalability:

“The Bayer Rice Carbon Program is generating hundreds of thousands of high-quality carbon credits, and with this large-scale pilot feeding into larger scale projects across the region, there are many more in the pipeline,” ​he said.

Beyond environmental benefits, participating farmers experience reduced labor and water requirements, leading to lower cultivation costs and increased profitability. Traditional rice farming involves transplanting seedlings into flooded fields, a labor-intensive process that demands substantial water resources.

In contrast, DSR allows farmers to sow seeds directly into the soil without flooding, conserving water and reducing labor needs.

Frank Terhorst, Executive Vice President of Strategy & Sustainability at Bayer’s Crop Science division, highlighted the broader impact.

This initiative not only leads to fewer emissions but also enhances farm profitability through reduced labor and water usage, and lower cultivation costs. And this is what regenerative agriculture is all about: the combination of on-farm outcomes that not only create value for farmers but make farming more resilient, and also benefit the environment,” he emphasized.

This initiative aligns with Bayer’s broader commitment to regenerative agriculture and climate change mitigation. The company is actively involved in the Good Rice Alliance, aiming to expand sustainable rice cultivation practices across Asia.

By 2030, the alliance plans to reach 1 million hectares across 15 states in India, potentially reducing emissions by approximately 3.5 million tons of CO₂ annually. ​

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