Soil’s Promise: Indigo Ag’s Carbon Credit Milestone Signals Shift Towards Verified Climate Solutions

By Michelle Bell

BOSTON – The voluntary carbon market has long been plagued by questions of legitimacy. But a recent milestone achieved by Indigo Ag – approval of its U.S. Soil Enrichment Protocol by the Integrity Council for the Voluntary Carbon Market (ICVCM) – signals a potential turning point. The validation affirms soil as a powerful, scalable carbon sink and, critically, establishes a new level of trust in credits generated through regenerative agriculture.

For years, concerns around “greenwashing” and the lack of standardized verification have shadowed carbon offset programs. But the ICVCM's Core Carbon Principles (CCP) – rigorous criteria focused on additionality, permanence, and avoiding leakage – are raising the bar. Indigo Ag’s success in meeting these standards positions the company as a leader in a rapidly evolving market, and demonstrates the potential of incentivizing farmers to adopt practices that both sequester carbon and improve soil health.

“There’s been a clear flight to quality in the voluntary carbon market,” says a data analyst at Patch, a carbon credit marketplace. “Buyers are increasingly prioritizing credits with strong integrity, and that’s driving demand for those approved under frameworks like the ICVCM’s CCP. Our data shows around 40% of buyers now clearly prefer CCP-approved credits.”

Rewarding Farmers for Healthy Soil

Indigo Ag's Carbon by Indigo program works by paying farmers to implement regenerative practices like cover cropping, reduced tillage, and optimized fertilizer use. These practices not only pull carbon from the atmosphere and store it in the soil, but also improve water retention, enhance biodiversity, and increase crop resilience – all crucial benefits in the face of climate change.

The company has already issued nearly one million soil carbon credits through this protocol, and claims to have paid “tens of millions” to farmers participating in the program. While verifying precise figures is challenging, interviews with agricultural economists confirm a growing interest in these types of income streams.

“Farmers are facing increasing pressure from rising costs, extreme weather, and market volatility,” explains an agricultural economist at a midwestern university. “These carbon programs offer a potential source of supplemental income, and can help offset the costs of transitioning to more sustainable practices.”

However, access to these programs remains uneven. Smaller farms and those with limited resources may face barriers to entry, and the complexity of verification processes can be daunting. Ensuring equitable access and providing technical assistance will be crucial to scaling these programs effectively.

Beyond Offsetting: The Rise of ‘Insetting’

The evolution of the carbon market is also seeing a shift from traditional offsetting – funding projects elsewhere to compensate for emissions – to insetting – reducing emissions within a company’s own supply chain. This is particularly relevant for food and agricultural companies seeking to build more resilient and sustainable supply chains.

“Companies are realizing that relying on offsets alone isn’t enough,” says a sustainability officer at a major food manufacturer. “They want to work directly with farmers to reduce emissions at the source and build more robust supply chains that are less vulnerable to climate shocks.”

Indigo Ag is actively partnering with companies to facilitate this transition. By connecting businesses with farmers practicing regenerative agriculture, they’re enabling companies to “inset” their emissions and build more sustainable supply chains. This approach not only reduces environmental impact but also enhances brand reputation and builds stronger relationships with stakeholders.

Challenges and the Path Forward

Despite the promising developments, challenges remain. Verifying the permanence of soil carbon sequestration is complex, and ensuring that carbon remains stored in the soil for decades or even centuries is crucial. Monitoring, reporting, and verification (MRV) systems need to be robust and transparent to ensure the integrity of carbon credits.

Furthermore, the additionality of carbon sequestration – proving that the regenerative practices would not have been adopted without the incentive of carbon credits – is often difficult to demonstrate. Rigorous baseline assessments and counterfactual scenarios are needed to ensure that carbon credits represent genuine emission reductions.

“There’s a lot of hype around soil carbon sequestration, and it’s important to be realistic about the potential and the challenges,” cautions a soil scientist at a research institution. “We need to invest in research to improve MRV technologies and develop more robust verification protocols.”

Looking ahead, several factors will be critical to scaling soil carbon sequestration effectively. These include:

• Standardization and interoperability: Developing standardized protocols and data formats will facilitate the exchange of information and streamline verification processes.
• Investment in technology: Innovative technologies like remote sensing, AI, and blockchain can help improve MRV efficiency and transparency.
• Policy support: Government policies that incentivize regenerative agriculture and provide financial support for farmers can accelerate adoption.
• Farmer education and training: Providing farmers with the knowledge and resources they need to adopt regenerative practices is crucial.

Indigo Ag’s ICVCM approval is a significant step forward in the journey towards a more sustainable and resilient food system. By prioritizing integrity, transparency, and farmer engagement, the company is helping to unlock the potential of soil as a powerful climate solution. But realizing that potential will require sustained investment, innovation, and collaboration across the entire value chain.