Agriculture presents a crucial paradox in the modern world. It is vital for maintaining human life; however, traditional farming methods contribute to land degradation and greenhouse gas emissions. According to the Intergovernmental Panel on Climate Change (IPCC), agriculture, forestry, and other land use make up about 21% of global greenhouse gas emissions.1
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Agricultural land also has the capacity to help mitigate climate change through carbon sequestration. Danish Agri-Tech company Agreena focuses on utilizing this potential. Its initiative, AgreenaCarbon, operates as a soil carbon platform designed to support and finance the transition of farms from carbon sources to carbon sinks.2
The program offers financial incentives for farmers to adopt regenerative farming practices by quantifying carbon sequestration and emissions reductions. Third-party verification of these outcomes converts them into CO₂e-certificates that farmers can sell. This provides additional income for the farmers and promotes sustainability goals.
Since its establishment in 2018, Agreena has expanded across Europe, responding to the demand for market-based, scalable approaches to sustainable agriculture. The initiative offers a practical model for incorporating climate mitigation into farming systems by addressing economic challenges associated with adopting environmentally friendly practices.
Introduction to Agreena's Carbon Credits
Video Credit: Agreena/YouTube.com
The Challenge: The Economics of Conventional Agriculture
Industrial agriculture has prioritized yield maximization for decades, often at the expense of environmental sustainability. Standard practices such as intensive tillage, monoculture cropping, and synthetic fertilizers have contributed to soil degradation. Tillage, specifically, disrupts soil structure, releases stored carbon into the atmosphere as CO₂, and increases vulnerability to erosion. Over time, these practices can reduce soil health and productivity, making agricultural land a source of greenhouse gas emissions.
Economic pressures complicate the shift to sustainable farming. Farmers face high input costs, fluctuating commodity prices, and financial risks. These constraints can make the transition to alternative methods, such as the suite of regenerative farming practices, appear economically challenging in the short term, which may limit adoption despite the long-term benefits.
The AgreenaCarbon Solution: Monetizing Soil Health
Agreena's platform provides a commercial and scientific framework to integrate regenerative agriculture into a market-based carbon accounting system. It provides technological tools and financial incentives to support the transition for farmers.
The process demonstrates an application of science, technology, and commercial mechanisms:
- Farmer Enrolment and Baseline Assessment: Farmers register their fields through Agreena's digital platform. Agreena establishes a baseline for each field's carbon stock and emissions profile, using multiple years of historical satellite data combined with farmer-provided information.
- Practice Implementation: Participating farmers commit to adopting one or more regenerative farming practices, such as converting from conventional tillage to no-till or minimum-till farming and introducing cover crops between harvest seasons.
- Measurement, Reporting, and Verification (MRV): The platform employs a hybrid MRV system. It combines satellite-based remote sensing with internationally recognized biogeochemical modeling to quantify changes in soil organic carbon and greenhouse gas reductions. This data is periodically calibrated and validated with physical soil sampling.
- Third-Party Verification: A third party independently audits the quantified outcomes according to the ISO 14064-2 standard, ensuring transparency and credibility.3
- Issuance and Sale of CO₂e-Certificates: Upon successful verification, Agreena issues certificates, where one certificate represents one metric ton of carbon dioxide equivalent (CO₂e) that has been removed or reduced. Farmers retain ownership of these certificates and can sell them through Agreena's marketplace to corporate buyers or on other voluntary carbon markets.
This model's approach integrates proven regenerative farming practices with a market-driven financial structure. It creates a business case for sustainability that extends beyond traditional government subsidies.
Quantifying the Impact: Carbon Sequestration Rates
A critical question for both farmers and carbon markets is: how much carbon can be stored in the soil? The rate of soil carbon sequestration is not a fixed number; it is variable and depends on climate, soil type, historical land use, and the specific regenerative farming practices employed.
Scientific research provides a range of potential outcomes. Research summarized by institutions, such as Colorado State University, shows that regenerative agricultural practices—particularly no-till farming and cover cropping—can contribute meaningfully to soil carbon sequestration.
These methods improve soil structure, reduce erosion, and enhance organic matter content, creating conditions that support long-term carbon storage. Depending on local conditions such as soil type, climate, and management approach, farms implementing these practices can sequester between 1.2 and 3.7 metric tons of CO₂-equivalent per hectare per year (approximately 0.5 to 1.5 tons per acre annually).4 These rates can be higher in favorable conditions.
This variability demonstrates why MRV platforms such as AgreenaCarbon are important. Rather than relying on a generalized estimate, Agreena's model quantifies the specific outcome for each field, ensuring that the issued CO₂e-certificates reflect the verified climate benefit. This provides the scientific rigor needed to build trust and value in the voluntary carbon market.
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Feature
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Conventional Farming Practices
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Regenerative Farming (Agreena Model)
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Tillage
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Intensive ploughing, annually turning soil
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No-till or minimum tillage, leaving soil structure intact
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Soil Cover
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Fields often left bare between harvests
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Cover crops are planted to protect soil and add organic matter
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Fertilizer Use
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Heavy reliance on synthetic nitrogen fertilizers
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Reduced use of synthetics; increased use of organic matter
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Soil Outcome
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Soil degradation, carbon loss, increased erosion
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Improved soil organic matter, water retention, and carbon storage
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Sequestration Potential
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Generally a net source of emissions
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1.2 to 3.7 CO₂e/ha/yr<br>(metric tons)
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Economic Model
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Revenue based solely on crop yield
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Dual revenue stream: crop yield + CO₂e-certificates
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This table compares conventional farming practices with regenerative farming methods adopted in Agreena's carbon sequestration model, highlighting differences in soil management, environmental outcomes, and revenue structures.
Industry Impact and Global Significance
The AgreenaCarbon program benefits multiple stakeholders. For farmers, it offers an additional revenue stream that can help reduce the financial risks associated with adopting regenerative farming practices while also supporting improvements in soil health, crop resilience, and farm profitability.
The program offers corporate buyers access to verifiable carbon credits that assist in meeting sustainability goals. The focus on co-benefits, such as increased biodiversity and improved water quality, is relevant for companies seeking carbon credits that provide environmental and social value alongside carbon offsetting.
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The model is relevant beyond Europe. Agreena has shown the scalability of its market-based mechanism for sustainable farming, with over 2 million hectares enrolled across 16 European countries. Its framework may serve as a reference for similar initiatives in other agricultural regions.
Challenges and Future Outlook of Soil Carbon Initiatives
Scaling soil carbon initiatives globally involves several challenges. A key technical issue is the precision, cost, and scalability of monitoring, reporting, and verification (MRV) systems. While Agreena’s hybrid model is currently a leading approach, the industry continues to develop AI and advanced remote sensing technologies to improve accuracy and reduce costs.
Ensuring permanence (the longevity of sequestered carbon) and additionality (confirming credits arise from new actions) are essential for maintaining market credibility. Agreena addresses these through multi-year contracts with farmers and a baseline methodology, though these remain areas of ongoing attention across the voluntary carbon market.
Looking forward, the progress of regenerative agriculture and carbon farming depends on maintaining scientific standards, improving monitoring technologies, and ensuring financial incentives are fairly distributed.
Agreena is expanding its platform, supported by a recent €46 million funding round, to scale operations and advance its technology. Market-based programs like AgreenaCarbon provide examples of integrating environmental and economic considerations in agriculture’s role in climate solutions.
References and Further Reading
- IPCC. (2022). Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. https://www.ipcc.ch/report/ar6/wg3/
- Agreena. (n.d.). About Agreena. Agreena.com. Retrieved March 29, 2024, from https://agreena.com/about-us
- International Organization for Standardization. (2019). Greenhouse gases — Part 2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements (ISO Standard 14064-2:2019). https://www.iso.org/standard/66455.html
- Colorado State University. (n.d.). Soil carbon sequestration. Sustainability at CSU. https://sustainability.colostate.edu/humannature/soil-carbon-sequestration/
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