Carbon trading is emerging as a potential source of climate finance for South Asia’s millions of small landholders. Practices such as agroforestry, conservation farming, improved fertilizer use, and methane reduction could help farmers generate carbon credits while strengthening climate resilience and promoting more sustainable agricultural practices.
However, fragmented policies, weak monitoring systems, and limited institutional capacity remain major barriers to participation. Experts suggest that South Asian countries need common standards, stronger verification mechanisms, and regional cooperation to lower transaction costs, improve market access, and build confidence in carbon markets.
Reference: The Climate Watch