Carbon Credits in Dairy? Can Shunya lead a unique approach

Did you know: Enteric Methane emission from Indian livestock contributed 15.1% of total global enteric methane emission. Cattle ranked first in emitting enteric methane contributing about half (49.1%) of total enteric methane, followed by buffalo (42.8%), goat (5.38%) and sheep (2.59%) and other (0.73%)

Patra AK. Trends and Projected Estimates of GHG Emissions from Indian Livestock in Comparisons with GHG Emissions from World and Developing Countries. Asian-Australas J Anim Sci. 2014 Apr;27(4):592-9. doi: 10.5713/ajas.2013.13342. PMID: 25049993; PMCID: PMC4093536.

The agriculture and dairy industries are major contributors to greenhouse gas (GHG) emissions, particularly methane (CH₄) from livestock and carbon dioxide (CO₂) from traditional farming methods. With global efforts intensifying to mitigate climate change, sustainable agritech solutions—like hydroponic fodder cultivation—are emerging as key strategies to reduce emissions and unlock new revenue streams through carbon credits trading.

Enteric fermentation based methane emission from livestock

Shunya Agritech is at the forefront of this transformation, with its Growth & Logistics Centres (GLCs) serving as innovation hubs for sustainable fodder production. By integrating hydroponic vertical farming, efficient resource management, and digital tracking for emissions reductions, Shunya enables the generation of carbon credits while providing high-quality green fodder to dairy farmers.

What Are Carbon Credits?

Carbon credits are tradable certificates that represent one metric ton of CO₂ (or equivalent GHGs) reduced or removed from the atmosphere. Organizations implementing verified sustainability practices can generate carbon credits and sell them in voluntary or compliance markets, creating an additional revenue stream.

Sources of Emissions in Traditional Fodder Cultivation & Livestock Management

  • Enteric Fermentation (Methane from Livestock) – A significant source of agricultural GHG emissions.
  • Manure Management – Unprocessed animal waste releases methane and nitrous oxide.
  • Fodder Production & Land Use – Deforestation, excessive water use, and synthetic fertilizers contribute to CO₂ emissions.
  • Energy Use – Diesel-powered machinery and inefficient farm operations increase carbon footprints.

Shunya’s GLC model provides a sustainable alternative to traditional fodder cultivation, reducing emissions and improving farm efficiency.

How Hydroponic Fodder Reduces Carbon Footprint?

Shunya’s hydroponic vertical farming system enables dairy farmers to reduce emissions and qualify for carbon credits through:

  • Lower Methane Emissions – Hydroponic fodder improves digestion efficiency in livestock, leading to reduced methane production.
  • 90% Less Water Usage – Shunya’s system requires just 2-3 liters of water per kg of fodder, compared to 70 liters/kg in conventional farming.
  • Minimal Land & Chemical Use – Eliminates the need for fertilizers, pesticides, and large land tracts, cutting emissions from agrochemical production.
  • Higher Feed Efficiency – Nutrient-rich hydroponic fodder enhances milk yield, reducing the number of cows needed per liter of milk produced.
Potential Impact of improved diet using Shunya's Nutri Sprouted Feed on methane emission from livestock

Each GLC can generate carbon credits by reducing emissions across the fodder supply chain. A single centre can contribute 5-10 metric tons of CO₂-equivalent reductions annually, valued between $150-$300 in carbon markets.

Additionally by leveraging renewable energy sources across the GLC, operations can still be run very smoothly as GLC operations are not power intensive. Also, it entails a Carbon Credit Potential of 3-5 metric tons per GLC per year, valued at $50-$100.

Expanding Carbon Credit Opportunities Through Sustainable Practices

Beyond the operations of GLC, Shunya can engage with the communities of dairy farmers that it works with to explore associated opportunities like

Manure Management & Biogas Integration at GLCs

  • Methane Capture – Anaerobic digesters convert manure into biogas, reducing emissions.
  • Carbon Credit Potential – 10-15 metric tons per GLC per year depending on the population of livestock, valued at $150-$250.

Agroforestry & Carbon Sequestration

  • Incorporating Vertical Green Spaces – Carbon capture through plant-based sequestration in hydroponic farms.
  • Carbon Credit Potential – 5-8 metric tons per hectare, valued at $75-$120.

Monetizing Carbon Credits: How Shunya & Its Partners Benefit

There are well defined steps to register GLCs for Carbon Credit Programs that Shunya is pursuing

1. Adopt Verified Sustainability Practices – Implement hydroponic fodder, biogas integration, and renewable energy solutions.

2. Measure & Document Emissions Reductions – Utilize digital carbon accounting tools.

3. Register with Recognized Carbon Credit Programs:

  • Verra (VCS) – Leading voluntary carbon standard.
  • Gold Standard – Focused on sustainable agriculture.
  • Clean Development Mechanism (CDM) – UN-backed credits for emission reductions.

4. Sell Carbon Credits – Participate in international or local carbon markets.

Future of Sustainable Agritech with Shunya

As the global demand for carbon-neutral solutions grows, sustainable agritech practices are no longer optional—they are essential. Shunya Agritech’s model provides a scalable blueprint for reducing emissions, improving efficiency, and unlocking new revenue streams through carbon credit markets.

Shunya Agritech is pioneering hydroponic fodder adoption at scale, providing dairy farmers and the communities with sustainable solutions that reduce emissions and enhance productivity.

Interested in joining us in this journey? Contact Shunya Agritech today to discuss more!

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References & Data Sources

1. FAO Report on Climate Change & Agriculture (2023)

2. Verra & Gold Standard Carbon Credit Frameworks

3. NABARD & Indian Dairy Research Institute Studies

4. CDM Reports on Livestock Methane Reduction

5. Case Studies from Carbon Offset Projects in Agritech