Unlocking the Carbon Credits Market for Agriculture, Forestry, and Land Use: Key Trends and Opportunities

As climate urgency escalates and global net-zero targets loom, carbon credits have emerged as powerful financial tools to reduce greenhouse gas (GHG) emissions while monetizing regenerative land practices. Particularly in agriculture, forestry, and land use (AFOLU) sectors, carbon credits are redefining how farmers, agribusinesses, and industrial stakeholders contribute to global decarbonization.

According to BIS Research, the AFOLU carbon credits market is rapidly expanding—driven by technological advancements, policy support, and corporate sustainability goals. If you're a policymaker, investor, or agritech stakeholder, this is your moment to capitalize.

What Are Carbon Credits in Agriculture and Forestry?

In the voluntary carbon market (VCM), each credit represents one metric ton of CO2 equivalent (tCO2e) either removed from or prevented from entering the atmosphere. Activities like cover cropping, agroforestry, and peatland restoration can generate these credits, provided they meet high-integrity standards from registries like Verra, Gold Standard, or the EU’s CRCF Regulation.

This system enables stakeholders to convert climate-positive practices into tradable assets, allowing farmers to diversify income while supporting global climate goals.

📊 2024 Market Snapshot

• AFOLU credit volume: ~216 Mt CO2e
  
  

• Agriculture’s share: ~100 Mt CO2e (~30%)
  
  

• Average price: $4–$6/tCO2e
  
  

• Premium for removal credits: +20–30%
  
  

• Leading companies: Bayer, Indigo Ag, Nutrien, ADM, Shell
  
  

Despite momentum, agriculture still trails behind forestry in total issuance, hindered by concerns around permanence, additionality, and methodology fragmentation.

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📈 Growth Outlook: What’s Driving the Market?

1. Policy Tailwinds

• The EU CRCF Regulation is pushing for high-integrity removals.
  
  

• The U.S. Inflation Reduction Act promotes carbon farming incentives.
  
  

• Asia-Pacific nations like China, Japan, and South Korea have integrated carbon offset requirements into industrial and agricultural policy frameworks.
  
  

2. Corporate Net-Zero Goals

Big names like Apple, IKEA, Unilever, and Kering are already making long-term AFOLU credit purchases to meet 2030–2050 decarbonization goals. Their multi-million-dollar investments are fueling demand for verifiable, nature-based offsets.

Industrial Impact: From Equipment to Ethanol

🔹 Precision Ag Gets a Carbon Edge

OEMs like John Deere and AGCO are embedding carbon MRV (monitoring, reporting, verification) into farming machinery, cutting soil disturbance by 80% and accelerating audit timelines by 60%.

🔹 Supply Chain Premiums

Processors like ADM are paying $0.50–$1.00/bushel premiums for grains accompanied by blockchain-backed carbon certificates.

Carbon-Smart Inputs on the Rise

Firms like Corteva and Nutrien are investing in low-tillage seed coatings and biostimulants that not only improve yields but also qualify for carbon credit protocols.

🔍 Market Segmentation Highlights

✅ By Application:

• Removal Projects dominate, driven by high credibility and long-term carbon storage.
  
  

✅ By Project Type:

• Forestry leads growth due to higher sequestration per hectare and co-benefits like biodiversity.
  
  

✅ By Region:

• Asia-Pacific is the fastest-growing region, fueled by government subsidies, digital MRV adoption, and emerging market potential.
  
  

Recent Developments to Watch

• Boomitra & Social Carbon Foundation issued high-integrity soil organic carbon credits in April 2025.
  
  

• Grow Indigo secured $10M to expand carbon programs across India’s 2.5M+ acres.
  
  

• A global consortium (Shell, Bayer, Mitsubishi, GenZero) launched an 8,500-hectare carbon farming program for rice.
  
  

Market Restraints: Challenges to Consider

• Land Tenure Uncertainty: Complicated legal frameworks delay project registration.
  
  

• Verification Bottlenecks: Traditional audits can take up to 90 days, limiting credit flow.
  
  

Future Opportunities: Blockchain and Retail Access

The tokenization of carbon credits is a game changer. Platforms now allow fractional, blockchain-based ownership of carbon offsets, enabling retail investors and SMEs to trade credits 24/7. This innovation democratizes access and strengthens market liquidity, all while maintaining registry-level integrity.

📥 Want to Dive Deeper?

Download BIS Research’s in-depth market intelligence report on the Carbon Credits Market for Agriculture, Forestry, and Land Use to explore:

✅ Market sizing and forecasts (2024–2035)
✅ Company and project profiles
✅ Competitive landscape
✅ Investment opportunities
✅ Regional insights and policy frameworks

📊 Make informed decisions. Back your strategies with verified data.

👉Request a Free Sample for AFOLU Carbon Credits Market Report 

🔑 Final Takeaway

The global carbon credits market is no longer just about compliance—it's about climate performance, profitability, and strategic positioning. With growing corporate demand, robust policy frameworks, and emerging tech like blockchain and AI-driven MRV, the AFOLU sector is primed for exponential growth.

Whether you're a farmer, policymaker, or investor—the time to engage with this market is now.