“It is difficult to imagine that one can earn by selling air,” said Puria Nayak, a farmer from Gujulingi village in Odisha’s Ganjam district.

He was one of many residents attending a community meeting on carbon credits — a concept unfamiliar to most, but quickly taking shape through local reforestation efforts. In this part of rural Odisha, where rainfall is uncertain and farmland is often depleted, communities are trying something new: planting trees not only to restore land, but to generate income from the carbon they store. Backed by Gram Vikas and technical partners, the initiative aims to make climate action tangible, locally led, and economically meaningful.

Local stakeholder consultations in Patrapur

On 7 May 2025, Gram Vikas hosted a Local Stakeholder Consultation (LSC) at its campus in Puriasahi, Patrapur block. Participants included more than 80 farmers, youth, women leaders, Village Development Committee members, and Panchayat officials from Tumbaguda, Buratala, and Ankuli Gram Panchayats. The session introduced a new chapter in community-led tree plantation aimed at improving environmental health and generating income through carbon credit registration.

The consultation was facilitated by Gram Vikas’ Climate Consciousness Action Taskforce (CCAT), with technical support from Fair Climate Fund (FCF) India and the Centre for Grower-centric Eco-value Mechanisms (C-GEM). It is part of a wider agro-social forestry initiative spanning four districts—Ganjam, Gajapati, Kalahandi, and Kandhamal—where the focus is on restoring degraded lands and improving local livelihoods.

Launched in 2024, the initiative aims to support approximately 6,000 smallholder farmers, primarily from Adivasi communities. The goal is to plant 15 million saplings across 3,561 hectares by 2027. In addition to tree cover, the initiative is expected to improve soil moisture, rejuvenate water sources, enable year-round cultivation, and increase household income.

Engagement with carbon markets

On 22 May 2025, a second consultation took place at the Gram Vikas Vidya Vihar school campus in Gayaganda Panchayat, Jagannathprasad block. More than 300 participants attended, including farmers, Gram Panchayat Coordination Committee members, youth, and women leaders from across the block.

For many participants, this was their first introduction to carbon markets. Facilitators explained that planting and maintaining trees helps remove atmospheric carbon dioxide, and that this environmental service can be monetised through verified carbon credit schemes under the Plan Vivo carbon registry.

Through this mechanism, smallholder farmers receive income for maintaining trees that sequester carbon. Carbon credits generated over 30 years can provide a regular income stream, supplementing farm-based livelihoods. The registry provides a structured process to quantify and validate the environmental services contributed by each farmer.

Community questions and responses

During the session at the Puriasahi campus, participants raised several practical questions. Sabita Badamundi, a woman farmer and member of the Lambada Farmers Producer Group from Buratala village, asked whether the trees would still belong to her after 30 years. Facilitators clarified that ownership of both the land and trees remains with the farmer. The income generated is linked to the environmental service provided through tree maintenance, not to any transfer of rights.

Banka Pradhan, an elderly farmer from Aliala village in Ankuli Panchayat, commented on the potential of the programme, stating, “This is like turning stone into gold, not just for us, but for our children too.”

At the consultation in Gayaganda, Shri Sulamani Satapathy, honorary Wildlife Warden of Ganjam district, played a key role in simplifying the carbon credit concept. After explaining the link between tree conservation and income generation, he led the group in a song promoting environmental protection. Participants joined in gradually, turning the session into a shared moment of collective enthusiasm. According to several attendees, this informal exchange helped reinforce the core message of the programme.

Environmental and economic benefits

Gram Vikas noted that for plantations established between 2021 and 2024, income would begin shortly after registration. For new plantations, earnings typically start in the third or fourth year.

In addition to income, the programme offers ecological benefits. Tree plantations are expected to reduce topsoil erosion, improve water retention, and increase soil health. Indicators include higher infiltration rates, lower soil density, and better water-holding capacity, all of which support productivity and long-term resilience.

Structural challenges and the need for awareness

One key challenge is landholding size. Many farmers in the region own just over an acre. It is too little to generate substantial income from carbon credits alone. With carbon markets still evolving and limited awareness at the grassroots level, bridging the knowledge gap is essential.

To address this, Gram Vikas and FCF are providing technical support and training in plantation care, monitoring, and record-keeping. Agroforestry plots include high-value fruit-bearing trees such as mango, cashew, lemon, and litchi, while native species like neem, mahua, tamarind, jackfruit, and amla are being introduced in social forestry models.

The programme starts with baseline surveys to assess land eligibility, plantation survival, and community interest. Plan Vivo then validates the data, followed by a transparent registration process that ensures only eligible farmers are enrolled.

Ownership model and revenue distribution

C-GEM manages the carbon credit agreements on behalf of the community, ensuring that the maximum possible share of revenue flows directly to participating farmers. The project is structured to centre ownership, decision-making, and financial benefit at the community level.

To date, Local Stakeholder Consultations have taken place in three districts. In Ganjam, residents from 15 Gram Panchayats have participated. In Kandhamal, eight Panchayats were involved, while in Gajapati, participants from three Panchayats attended the session in Koinpur village.

Building a long-term community climate strategy

Upcoming plantation drives will target degraded and fallow lands using a watershed and source shed planning approach aligned with Gram Vikas’ Water Source Sustainability and Livelihood thematic areas.

At the close of the Gayaganda session, participants expressed a need for ongoing awareness sessions in local languages and requested a clear, step-by-step roadmap to guide their participation. Gram Vikas confirmed its commitment to providing continuous follow-up through field visits, training, and technical assistance.

This programme presents a structured model for linking environmental restoration with rural livelihoods. By placing control in the hands of farmers and local leaders, it aims to build long-term climate resilience while generating income through carbon markets. As interest in verified carbon credits grows, this initiative offers one example of how community-led action can help align environmental priorities with economic inclusion.