From agronomic practices to carbon credits: A systematic review of agricultural carbon markets in India

Abstract

Carbon markets are becoming an important tool for reducing greenhouse gas (GHG) emissions from agriculture and they are particularly relevant for India, which is both the world’s third-largest GHG emitter and a major agricultural economy. This systematic review synthesises current evidence on the development, mechanisms and emerging trends of carbon markets in Indian agriculture, situating them within the wider global context. Following a Preferred reporting items for systematic reviews and meta-analyses (PRISMA)-guided search of five databases (247 records identified, 62 studies retained), the review examines five closely connected areas: global and India-specific carbon market mechanisms; agronomic practices that enable market participation; major agricultural GHG sources and mitigation opportunities; soil health and carbon sequestration; and methodological, policy and inclusion gaps. The synthesis demonstrates that sustainable practices such as conservation agriculture, alternate wetting and drying (AWD) in rice systems, biochar application, precision nutrient management and agroforestry can reduce agricultural emissions while also improving soil fertility and carbon storage. Furthermore, emerging tools, including blockchain-based transparency systems and AI-enabled precision agriculture, can strengthen market credibility and make participation more accessible for smallholder farmers. However, agricultural carbon markets in India remain at an early stage and their growth is constrained by weak measurement, reporting and verification (MRV) systems, inadequate smallholder inclusion, concerns around additionality and the lack of a comprehensive domestic regulatory framework. Uncertainties around carbon permanence, leakage, transaction costs and market volatility further temper these prospects and warrant cautious interpretation of reported gains. This review identifies four priority areas for future work: standardising robust MRV systems, developing integrated impact models, designing inclusive market mechanisms and aligning carbon market policies with India’s broader agricultural, climate and livelihood commitments. Addressing these gaps will be essential for realising agriculture’s mitigation potential and supporting a low-carbon, climate-resilient agricultural future in India.