According to an official statement, Rs 49.55 lakh has already been distributed to 244 farmers under the first phase of the scheme

In a first-of-its-kind initiative in the country, the Uttar Pradesh government has started the Carbon Credit Finance Scheme to promote environmental conservation while strengthening the economic well-being of farmers. The scheme, implemented in partnership with The Energy and Resources Institute (TERI), was formally advanced during the state-wide plantation drive held in Ayodhya Dham, with Chief Minister Yogi Adityanath initiating the second phase of disbursement.

According to an official statement, Rs 49.55 lakh has already been distributed to 244 farmers under the first phase of the scheme. These farmers, drawn from divisions including Gorakhpur, Bareilly, Lucknow, Meerut, Moradabad and Saharanpur, generated 42.19 lakh carbon credits through agroforestry initiatives. Based on the current international market value of USD 6 per carbon credit, payouts to farmers are scheduled every five years.

The government will now disburse an additional Rs 25.45 lakh to 401 more farmers under the second phase. This phase covers farmers from districts such as Badaun, Pilibhit, Shahjahanpur, Bareilly, Bijnor, Najibabad, Sambhal, Rampur, Ghaziabad, Baghpat, Bulandshahr, Gautam Buddha Nagar, Hapur, Deoria, Kushinagar, and Gorakhpur, as well as areas in Hardoi, South Kheri, Raebareli, Sitapur, and Unnao.

The Carbon Credit Finance Scheme will soon be extended to Devi Patan, Ayodhya, Jhansi, Mirzapur, Kanpur, Varanasi, and Aligarh divisions in its second phase. The third phase will see the scheme’s implementation across the entire state.

Each carbon credit is equivalent to one metric ton of CO₂ or equivalent greenhouse gases absorbed from the atmosphere. Participating farmers can earn Rs 250 to Rs 350 per tree, in addition to the standard market price of the timber. The programme thus offers both direct financial benefits and long-term ecological gains.

“This is a landmark step in making carbon farming a viable and rewarding model for rural India. Uttar Pradesh is proud to be the first state in the country to implement such a scheme,” said a senior official involved with the initiative. The scheme aligns with India’s broader commitment to achieve carbon neutrality by 2070, while offering a sustainable and scalable income stream for farmers.