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Rice production is a significant contributor to global methane emissions, accounting for approximately 12% of such emissions. However, it also has the potential to mitigate greenhouse gas emissions through practices like the Alternate Wetting and Drying (AWD) method and increasing nutrient efficiency, which can reduce methane emissions by up to 48%.
CarbonFarm, founded in 2021, aims to decarbonize rice production and issue carbon credits for mitigation. One of the challenges they faced was measuring, reporting, and verifying (MRV) emissions reductions accurately, as it was difficult to provide proof that farmers had changed their practices and that these changes led to emission reductions. To address this issue, CarbonFarm turned to satellite technology, which offered a simpler and more reliable way of monitoring practices and collecting data.
CarbonFarm offers end-to-end services, including satellite monitoring of practices, quantifying greenhouse gas emissions, managing the carbon certification process, and brokering the credits on voluntary carbon markets. By implementing sustainable practices, rice farmers can have their changes verified through satellite observation. CarbonFarm’s AI model analyzes the satellite data to estimate emissions reductions, providing evidence for carbon credits. The company works with agribusinesses, rice buyers, carbon credit developers, governments, and others who have direct access to farmers.
Some of CarbonFarm’s largest customers include the United Nations Development Programme, Danone, and Mars. The company also supports Article 6.2 of the Paris Agreement and provides MRV for the first Article 6.2 project on rice methane implemented by the UNDP in Ghana.
Using satellites not only brings transparency to the process but also helps build trust, particularly in the face of controversies surrounding carbon markets. The use of satellite images ensures the credibility of practices and emissions monitoring. Large corporations are willing to pay a higher price for carbon credits verified using satellites as they want to ensure real impact on the ground and avoid fraud cases.
CarbonFarm aims to ensure that 70-75% of carbon credit revenues are passed back to the farmers as incentives. It is essential for farmers to understand the connection between their practice changes, emission reductions, and the rewards through carbon markets. Stakeholder consultation is crucial in any carbon project to ensure the farmer’s involvement and understanding of the process.

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