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#Raw Materials

ICAC launches Carbon Credits Initiative to deliver new income streams to cotton farmers

The International Cotton Advisory Committee (ICAC) has announced a new initiative designed to unlock additional income streams for cotton farmers through participation in carbon credit markets, linking sustainable production practices directly to financial returns.

Under the program, participating producers could generate up to $200 per hectare in additional revenue, while simultaneously improving soil health, enhancing resilience, and assisting in the fight against climate change.

The initiative integrates regenerative agriculture practices, biochar application, and a robust monitoring, reporting, and verification (MRV) system to generate high-quality, certified carbon credits that meet international market standards. By combining scientific rigor with practical on-the-ground implementation, the program aims to ensure both environmental integrity and financial viability.

A pilot phase is currently underway in Uzbekistan, where early results indicate strong potential for replication across cotton-producing countries. The model offers a scalable pathway to climate-smart agriculture, enabling farmers to benefit economically from sustainable land management while contributing to global climate goals.

To support implementation and market integration, ICAC has partnered with Merago Inc, which will oversee MRV processes, certification, and the trading of carbon credits generated under ICAC-led regenerative agriculture and carbon sequestration programs.

The ICAC Secretariat invites governments, private sector businesses, certification bodies, and industry experts to collaborate in scaling this initiative and expanding its impact across the global cotton sector.

For more information, please contact Ms Parkhi Vats (parkhi(at)icac.org), Upstream Lead for the project.



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