Google has agreed to purchase one million carbon credits from Indian climate-tech startup Mitti Labs by 2030, marking the largest publicly known deal for methane-reduction credits from rice farming. This initiative will reduce methane emissions and water use across substantial rice farming areas in Karnataka, Andhra Pradesh, and Telangana.
- 1 million carbon credits purchased for methane reduction in rice farming
- Covers 100,000 hectares in three Indian states with proven emission cuts
- Supports farmers through AI-enabled monitoring and payment for sustainable practices
What happened
Google signed a four-year agreement with Indian startup Mitti Labs to buy one million carbon credits generated by reducing methane emissions from rice farming. The deal covers farms across Karnataka, Andhra Pradesh, and Telangana and is the largest public methane-related carbon credit deal to date.
Mitti Labs incentivizes farmers to reduce the flooding duration of rice fields, which cuts methane emissions and irrigation water use significantly without lowering crop yields. The startup uses a GeoAI platform combining satellite radar imagery and on-ground data to monitor and verify environmental impact.
Why it matters
Rice cultivation is a major source of methane emissions in India and globally; cutting emissions by half through improved farming practices offers a scalable climate solution that also conserves water. Mitti Labs' approach aligns with growing corporate demand for credible and impactful carbon credits addressing methane, a potent greenhouse gas.
Google's commitment is part of its broader effort to achieve net-zero emissions by 2030, a challenging goal given its growing emissions from data centers and AI infrastructure. This deal enables Google to diversify its carbon credit portfolio with a project that delivers verifiable environmental benefits and supports rural farming communities.
What to watch next
Mitti Labs plans to expand its rice methane reduction projects beyond India into Southeast Asian countries like the Philippines and Indonesia by 2027. Growth in demand from corporate buyers such as Google could accelerate adoption of these practices across millions of farmers in the region.
The effectiveness of Mitti Labs' AI-driven monitoring technology and its ability to scale with rigorous third-party verification will be key to sustaining trust and impact in the voluntary carbon market. Further collaborations with large buyers could propel innovation and standardization in methane-focused agricultural carbon credits.