Companies commit to purchasing ag carbon credits

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Companies commit to purchasing ag carbon credits

Indigo Agriculture has announced the first commitments from companies to purchase agricultural carbon credits through Indigo Carbon.

Indigo Ag says the commitments from companies including IBM, Shopify, Barclays, and JPMorgan Chase represent a milestone in the global effort to leverage agriculture as a climate solution.

The companies have agreed to a credit purchase price of $20 per metric ton of carbon dioxide equivalents sequestered in the 2020 growing season. Indigo Agriculture says this provides a financial incentive to increase the adoption of practices that will reduce on-farm emissions.  

Indigo CEO Ron Hovsepian says Indigo is committed to ensuring that farmers are equipped with the tools and solutions they need to improve the economic and environmental resiliency of their operations.

Indigo will utilize the soil enrichment protocol by the Climate Action Reserve to allow for comprehensive and scalable long-term monitoring of on-farm emissions and carbon removal.

Indigo Carbon Vice President Ed Smith says the methodologies from the Climate Action Reserve and Verra, the non-profit that manages the Verified Carbon Standard, will lay the foundation for robust ag carbon financing.