New Delhi, May 9, 2025 — A groundbreaking high-level dialogue convened in New Delhi this week has set the stage for a major shift in how India’s livestock sector—especially dairy—is integrated into the global carbon economy. The event, titled “Unlocking the Carbon Market Potential in the Livestock Sector in India,” was jointly organized by the Carbon Markets Association of India (CMAI), Global Dairy Platform (GDP), and AFC India Ltd.
India, the world’s largest milk producer, faces a dual challenge: safeguarding rural livelihoods while cutting agricultural emissions. With livestock contributing over 60% of the country’s agricultural greenhouse gases, the sector is increasingly viewed as a critical focus area for climate action.
Why It Matters
The livestock sector, particularly dairy, supports millions of Indian farmers. But it is also a significant emitter—especially from enteric methane and manure management. This event brought together Ambassadors, top policymakers, NDDB, AMUL, NABARD, climate finance leaders, and project developers to forge a roadmap that leverages carbon finance to transform livestock into a climate asset.
“We are not starting from scratch—we already possess networks, scale, and technical expertise,” said CMAI President Manish Dabkara. “What’s needed is alignment across policy, finance, and standards.”
Key Discussions and Outcomes
Across five sessions, participants tackled regulatory, financial, and technological barriers to livestock carbon projects:
- Lack of livestock-specific carbon methodologies: A major hurdle blocking entry into carbon markets.
- Financing carbon projects: Experts highlighted the need for bundled credit models that integrate feed improvement, better breeding, and manure management.
- MRV systems: A consensus was reached to develop India-specific measurement, reporting, and verification (MRV) frameworks.
- Blended finance & revenue-sharing: New models were discussed to de-risk investment and ensure carbon revenues benefit smallholder farmers.
- Pilot projects: Identified in dairy-intensive regions to test integrated carbon mitigation strategies.
“This is about creating scalable initiatives that reward climate-smart dairy practices and support India’s climate goals,” said Donald Moore, Executive Director, GDP.
Forward Strategy
The dialogue concluded with commitments to:
- Draft a joint white paper summarizing policy, financial, and technical pathways.
- Align livestock emissions with India’s Carbon Credit Trading Scheme (CCTS).
- Establish regional incubation hubs for pilot initiatives.
- Present progress at COP30 later this year.
“Carbon finance must become a new engine of value for farmers,” said Rohit Kumar, Secretary General, CMAI. “Dairy farmers are not peripheral—they’re central to India’s climate and economic future.”