Carbon Credits in Agriculture: A Complete Guide to How They Work and the Opportunities They Offer

Fighting climate change requires concrete and measurable solutions. Among them, carbon credits have become a key tool for reducing and offsetting CO₂ emissions. In this context, agriculture—when practiced regeneratively—can become a powerful ally.

This guide explains what carbon credits are, how they are generated in the agricultural sector, and what opportunities they offer to those who work the land.

1. What are carbon credits?

Carbon credits are certificates that verify the reduction or removal of one metric ton of CO₂ (or equivalent gases) from the atmosphere.
They can be generated through reforestation, renewable energy, energy efficiency projects, and—increasingly—through agricultural practices that improve carbon sequestration in the soil.

There are two main markets:

  • Compliance market: regulated by international standards (e.g. EU ETS).
  • Voluntary market: companies and individuals purchase credits to responsibly offset their emissions.
    This is where Alberami operates.

2. The role of agriculture in carbon removal

Soil is one of the largest natural carbon sinks on the planet—storing more carbon than the atmosphere and all vegetation combined.

Through targeted agronomic practices, it is possible to enhance the soil’s carbon sequestration capacity, while also improving fertility, biodiversity, and the resilience of agricultural ecosystems.

Regenerative agriculture is based on this principle: rebuilding soil health over time, increasing organic matter, and activating beneficial natural processes.
Key practices include:

  • Cover crops: protect the soil from erosion and stimulate microbial life
  • Reduced tillage (no-till, minimum tillage): preserve soil structure and limit emissions
  • Compost, biochar, manure, agro-food byproducts: provide stable organic matter and long-term nutrients
  • Agroforestry, multifunctional hedgerows, buffer strips: increase biomass and support beneficial wildlife
  • Reduction of chemical fertilizers and pesticides: improves microbial biodiversity and lowers environmental impact
  • Compost tea and natural biostimulants: strengthen plant defenses and reduce the need for harsh treatments

Within the AgroEcology_Italy project, Alberami has identified 13 measurable and certifiable regenerative practices that can generate verified carbon credits and real value for farmers.

3. How are carbon credits generated in agriculture?

To generate certified carbon credits, a farming project must follow an internationally recognized protocol. The process includes several stages, each subject to transparent and scientific verification:

  • Enrollment in the project
    The farm signs a 15-year contract to join a certified program. The minimum required area is 3 hectares for tree crops or 10 hectares for arable land.
  • Selection and implementation of regenerative practices
    The farmer applies at least three new practices from Alberami’s protocol (e.g. cover crops, reduced tillage, organic matter input, sustainable residue management).
  • Ongoing monitoring
    Alberami oversees monitoring of changes in soil and biomass using an integrated system of lab analyses, satellite data, IoT sensors, and digital tools.
  • Independent verification
    A third-party auditor conducts a documentary and field audit, certifying that the carbon removed is real, measurable, and compliant with international standards.
  • Issuance and registration of credits
    Verified credits are issued and recorded on an official registry, traceable via blockchain technology, ensuring secure and transparent access to the international voluntary market.

Each credit must meet key criteria: additionality, traceability, permanence, and verifiability. This is how agriculture becomes a credible player in climate action.

4. Certifying agricultural carbon credits

To be credible and marketable, agricultural carbon credits must meet strict internationally recognized criteria. Here’s how they apply in practice:

  • Additionality
    The benefits must be above and beyond the business-as-usual scenario. Without the project, no carbon would be sequestered.
    For example, cover crops or compost application must be new practices for the farm—not already in use.
  • Permanence
    The sequestered carbon must remain stored in the soil or biomass for a significant period.
    Our partner farmers commit to maintaining these practices for at least 15 years. We also adopt a dual-buffer system (untradeable credits held in reserve) to protect both stock and buyers from unforeseen risks.
  • Conservative and real measurement
    Credits are based on real, conservative data to avoid over-crediting.
    We use soil sampling, geochemical modeling, satellite data, and IoT sensors to calculate the actual carbon stored, always applying conservative factors.
  • Traceability and transparency
    Every credit is fully traceable throughout its lifecycle, using advanced digital technologies.
    Each batch is linked to a specific, geo-referenced field, verified by third parties and publicly recorded on official registries via blockchain.

Key references:

  • International Carbon Registry (ICR) – ICROA-accredited standard
  • Carbon Check (India) Pty Ltd – Verification body
  • BeZero Carbon – International rating agency

5. Opportunities for farmers

Participating in a certified carbon farming program brings tangible benefits, such as:

  • New income streams: from the sale of generated credits
  • Access to public funds: aligned with CAP, RDP, Organic certifications
  • Environmental improvements: greater soil fertility, improved crop resilience

6. Why choose local, certified, and transparent projects

As the voluntary carbon market grows, not all projects are created equal.
Transparency and independent verification are essential to avoid greenwashing and ensure real impact.

Local agricultural projects—like those activated in Italy—allow for:

  • Direct measurement of results on the ground
  • Engagement of local communities and businesses
  • Creation of shared, measurable value

7. Alberami and the AgroEcology Italy model

AgroEcology Italy is the first internationally certified Italian carbon farming project, developed by Alberami.

It combines:

  • Certified regenerative agricultural practices
  • Advanced monitoring technologies
  • Recognized third-party certifications
  • Risk-free participation for farmers: no upfront costs required. Farmers may choose to contribute only after receiving revenue from credit sales
  • Fair revenue sharing: up to 75% of the income from generated and sold credits goes directly to the farmer.

With over 350 farmers involved and 10,000+ hectares activated across Italy, AgroEcology Italy is a concrete demonstration of how agriculture can generate environmental, economic, and social value.

Agricultural carbon credits are not just a tool for offsetting—they’re a lever to transform how we produce, and a way to reward those who grow food responsibly.

Want to know if your farm can generate certified credits?
Contact us—we’ll guide you step by step.