What's Happening?
Mirova, a French climate-focused investment firm, has invested $30.5 million in Varaha, an Indian climate tech startup. This investment aims to expand Varaha's regenerative farming program, which supports smallholder farmers in northern India. Mirova's
investment is structured to receive a share of the carbon credits generated by Varaha's projects over time, rather than taking equity. Varaha's Kheti project, which operates in Haryana and Punjab, encourages farmers to adopt low-emission practices and generate verified carbon credits. The project covers over 200,000 hectares and aims to reach 337,000 farmers across 675,000 hectares. Varaha focuses on practices like direct seeding of rice and crop residue incorporation to improve soil health and reduce emissions.
Why It's Important?
This investment is significant as it supports sustainable agricultural practices that can enhance soil health and biodiversity, making agriculture more resilient to climate change. For smallholder farmers in India, these practices are crucial for survival amid declining soil fertility and erratic rainfall. The carbon credits generated provide an additional income source for farmers, helping to offset supply-chain emissions for companies like Kering, Orange, and others. Varaha's approach also aims to reduce water use, limit chemical inputs, and improve crop yields, contributing to cleaner air and lower farming costs. The investment highlights the growing importance of regenerative farming in addressing environmental challenges and supporting rural communities.
What's Next?
Varaha plans to use the investment to procure machinery necessary for implementing regenerative practices, such as direct seeders and crop residue incorporation machines. The credits generated will be verified using Verra's VM0042 methodology, with a revenue-sharing model to benefit participating farmers. Varaha is also seeking Climate, Community & Biodiversity certification from Verra. The startup aims to develop programs for women farmers to strengthen gender inclusion. Additionally, Varaha has signed a deal with Google to provide 100,000 tons of carbon dioxide removal credits by 2030, further enhancing its global reputation.
Beyond the Headlines
The investment in Varaha underscores the potential of regenerative farming to address broader environmental and social issues. By improving soil health and reducing emissions, these practices contribute to long-term sustainability and resilience in agriculture. The focus on gender inclusion and community benefits highlights the ethical dimensions of Varaha's approach. The partnership with Google and other investors reflects the growing interest in carbon removal and sustainable practices among major corporations.
