Soil could become the next frontier in climate finance. Soil carbon credits offer a bridge between on-farm regeneration and global climate strategy. Farmers, scientists, and companies are watching. Could this be how we fund restoration of degraded landscapes, and bring much-needed income stability to farming communities? Or might flawed measurement and short-term thinking undercut the promise?
What are Soil Carbon Credits?
Soil carbon credits are generated when farmers implement practices such as cover cropping, reduced tillage, or enhanced organic inputs that increase carbon storage in soil. Platforms like Agreena provide tools to measure, verify, and certify these gains, allowing credits to be sold in voluntary markets. The concept ties ecological benefit to economic value, motivating land stewards to invest in soil health.
Market Scope and Momentum
The global voluntary soil carbon market already exceeds $100 million in value, with forecasts pointing to billions in coming years. These credits offer new revenue streams for regenerative practitioners, potentially transforming farm balance sheets. For a farmer recovering from climate pressures or market volatility, such diversification could prove crucial.
Scientific and Practical Challenges
Carbon markets face significant scrutiny. Critics highlight:
Measurement reliability: Estimating soil carbon changes is inherently complex. Variability across sites and over time can distort impact.
Modeling uncertainty: Simulation-based offsets may misrepresent actual sequestration without ground-verified calibration.
Longevity of storage: Soil carbon gains can reverse with tillage, erosion, or climatic stress, raising questions about permanence.
Scientists like members of the British Society of Soil Science urge transparency and caution. For farmers, flawed credits mean both lost opportunity and loss of trust. For markets, it risks collapse.
Why Soil Carbon Credits Matter, When Done Right
With the right safeguards, soil carbon crediting has real potential:
Income resilience: Participating farmers diversify revenue and can fund regenerative transitions.
Ecological investment: Healthy soil boosts biodiversity, increases water retention, and enhances resilience to drought and erosion.
Scaling restoration: When data is credible, funders and supply chains can support low-carbon food systems.
Building Trust Through Rigor and Transparency
To ensure societal, financial, and ecological gains, the sector must:
Embrace robust soil measurement protocols, regular soil testing, remote sensing, and verifiable baselines.
Share methodologies and results openly to enable peer review.
Adopt standardized approaches across platforms to avoid fragmentation.
Set realistic expectations about sequestration timelines and reversal risks.
Establish farmer-centric models that prioritize soil benefit before sale.
Case Example: UK Farm and Agreena Partnership
A UK farm family reduced tillage, introduced cover cropping, and captured additional soil carbon. With help from Agreena, they computed credits to sell. The credit income supported further regenerative practices. Yet scientists still review the model for accuracy. It is both a hopeful example and a cautionary tale, demonstrating the careful path ahead.
A Broader Perspective: Soil Health Over Carbon Alone
Carbon is only one part of regenerative gains. True restoration demands measuring biodiversity, soil structure, and water dynamics. Too narrow a carbon focus risks commodifying soil. A shift from carbon-only crediting toward holistic soil-value assessments would align economic incentives with soil vitality.
Intersecting Climate, Policy, and Market
Voluntary carbon systems may catalyze broader change. Policy interventions might require:
Strong verification standards.
Market rules setting limits on credit sale.
Support for farmer education and infrastructure.
Some supply chains may prefer partnerships that pay for verified soil health improvements, not just carbon numbers.
Conclusion
Soil carbon credits offer economic reward tied to ecological progress. But their promise depends on scientific rigor, transparent practices, and long-term stewardship. For regenerative agriculture to scale with integrity, we must commit first to soil health, and let carbon calculation follow responsibly.
When soil regeneration aligns with earning opportunity and ecological truth, farming, and climate, wins.
Citations
Emerging soil carbon credit market exceeding $100 million in value with growth potential yet scientific skepticism over reliability.
Klim’s expansion to the UK to strengthen regenerative ag resilience among food companies amid extreme drought risk.
University of Nevada’s cover crop research aimed at climate resilience and soil health benefits.
