Climate Neutral Group is pleased to announce the sale of the first tranche of soil carbon credits from our AgriCarbonTM programme with issuance by the Verra Carbon Standard over the next few months. The buyer, a soon-to-be-named multi-national company, has purchased these removal carbon credits to support their global decarbonisation strategy.
This first issuance, 182 909 tonnes of soil carbon credits, was generated by 29 South African dairy farmers, across 173 agricultural fields. Each farmer will receive an initial payment of $11.55 (approx. R200) per carbon credit which is above the projected price of $10 for this initial issuance. The average value to be paid out to each farmer is estimated at just under R1 million. These farmers will also be eligible for the next rounds of sales through AgriCarbon and will qualify for a 5% loyalty bonus if they remain in the programme for a full five-year cycle. This equates to a total value of over R43 million paid out to farmers under AgriCarbon’s first issuance.
“At these payment rates for the carbon credits, farmers are able to finance the capital investment required for transitioning to regenerative farming by, for example, funding new machinery or to mitigate short -term yield losses. We are grateful to this early-stage buyer for supporting AgriCarbon and thereby facilitating the transition to more sustainable farming in South Africa,” Gray Maguire, AgriCarbon Programme Lead.