Amazon Commits to 685,000-Ton Carbon Credit Deal Covering Indian Rice Farms

Amazon has entered a long-term carbon credit offtake agreement with The Good Rice Alliance, covering more than 685,000 metric tons of CO2-equivalent credits generated by methane emission reductions from rice cultivation across India. The agreement supports sustainable water-management practices among more than 13,000 smallholder farmers cultivating over 35,000 hectares of farmland.

The Good Rice Alliance, a Bayer-owned initiative founded in 2022, works with Indian rice farmers to deploy practices such as Alternate Wetting and Drying and Direct Seeded Rice to cut methane emissions from continuously flooded paddy fields. Emission reductions are quantified using direct field-based methane measurements conducted in collaboration with the International Rice Research Institute, supported by digital monitoring tools and third-party verification under Verra's Verified Carbon Standard using the VM0051 methodology. Amazon is acting as the primary buyer for the project's initial crediting phase.

The deal carries significant relevance for India, which is the world's third-largest methane emitter and holds the largest rice cultivation area globally, supporting over 100 million livelihoods. Rice cultivation accounts for approximately 8-10% of global methane emissions, making it the second-largest source of agricultural methane after livestock. By pairing commercial carbon credit transactions with science-based measurement and independent remote-sensing verification, the agreement sets a quality benchmark for agricultural carbon markets in India and establishes a scalable model that could be replicated across the subcontinent.

The agreement strengthens the commercial viability of agricultural methane reduction as a carbon market asset class. For Indian farmers, the programme provides an additional income stream alongside agronomic support, while contributing to the country's broader climate commitments under the Paris Agreement. Amazon's purchase aligns with its strategy to acquire high-integrity carbon credits supported by auditable field data, reflecting the growing corporate demand for credible nature-based solutions that deliver verifiable and measurable climate impact.

Key figure — 685,000 metric tons of CO2-equivalent carbon credits