Unlocking Soil Carbon Credits: A Path to Benefit Farmers and Combat Climate Change

On a windy spring day, Thomas Gent strolls through his family farm, nestled between Cambridgeshire and Lincolnshire. The green shoots of winter wheat stand tall, with clover blanketing the ground below.

Thomas smiles as he digs into the soil. “Check out the root system,” he says, showing off the freshly turned clod. “We got 20mm of rain last night, and see how well the water drains? It’s because our soil is healthy.”

Unlike most fields in the UK, this land hasn’t been ploughed for 17 years. The Gent family embraced regenerative farming, a method aimed at boosting soil health and carbon storage.

These practices not only help the environment but are also becoming profitable. New companies are popping up to assess carbon in soil, allowing farmers to sell carbon credits. This gives them an extra source of income.

## The Rise of Regenerative Farming

Traditional farming often harms soil. Continuous cultivation of the same crops and heavy use of fertilizers degrades it. Regenerative methods tackle this. They include minimal soil disturbance, planting cover crops like clover, and cutting down on synthetic fertilizers to restore soil vitality.

Back in 2008, Thomas’s family was considered avant-garde for shifting away from conventional farming on their 800-hectare land. Today, he feels the movement is gaining momentum. With agriculture responsible for about one-third of global greenhouse gas emissions, he believes these methods can significantly impact climate change—and boost farmers’ income too.

Thomas also works with Agreena, a Danish start-up aiming to establish Europe’s largest soil carbon program. They create a framework for carbon credits that companies can buy to meet their climate goals.

## A Booming Market

Agreena isn’t alone. Companies like Soil Capital and Indigo are also diving into the voluntary carbon market focused on soil carbon trading. According to the Organisation for Economic Co-operation and Development, enhancing soil carbon could offset up to 4% of global emissions by the end of the century.

However, skepticism looms. A report by the Ecosystem Marketplace revealed that the voluntary carbon market peaked at nearly $2 billion in 2022 but saw a drop to around $723 million in 2023, following concerns about the effectiveness of some offset programs.

Tommy Ricketts, co-founder of BeZero Carbon, estimates soil carbon projects currently represent about 5%-10% of this market, valued at around $100 million. “We expect growth to reach billions by the mid-2030s,” he says.

## Measuring Soil Carbon

Agreena aims to assist farmers by measuring their existing soil carbon levels to sell carbon credits. Farmers must commit to this for 10 years. The company uses a method known as MRV (measurement, reporting, and verification), crucial for determining greenhouse gas reductions.

Their approach differs from traditional soil sampling. They combine soil samples with remote sensing and satellite data for detailed insights into carbon levels across fields.

Farmers can earn between €20 to €50 per hectare, depending on their soil’s carbon levels and regenerative practices. Agreena takes a 15% cut, leaving the majority for the farmers.

The company has big plans, currently working with 2,500 farmers across 20 European countries to transition 4.5 million hectares to regenerative agriculture.

## Navigating Skepticism

Proponents argue that soil carbon trading marries capitalism with environmental goals by linking financially strained farmers with corporations looking to meet sustainability targets. Yet, many soil scientists urge caution. They question the certainty of tracking soil carbon changes and whether current methods can accurately measure it.

The Integrity Council for the Voluntary Carbon Market is assessing these methodologies to establish standards in the sector. The British Society of Soil Science emphasizes the need for more evidence regarding the effectiveness of reducing tillage and planting cover crops.

Farming groups are also wary about long-term commitments to carbon offset programs. Concerns arise over unexpected events, like flooding, that could hinder a farmer’s ability to fulfill contracts.

Liz Bowles, chief executive of Farm Carbon Toolkit, states, “While we understand farmers seek alternative income, it’s crucial to ensure that selling offsets doesn’t compromise other climate goals.”

Thomas responds to criticism, asserting Agreena’s model is based on solid research, with over 400,000 soil samples collected. “We’re building a strong foundation that will get better as science advances,” he explains. “We shouldn’t let perfection be the enemy of progress.”

In a rapidly evolving market, regenerative agriculture stands at the intersection of environmental responsibility and economic opportunity. It offers a promising path forward for farmers and the planet alike.



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