The initiative, which is being driven by Asian carbon project developer Varaha, will support the transition of over 337,000 smallholder farmers toward regenerative practices.
French sustainable asset manager Mirova has announced a $30m (€26m) investment into the Kheti soil carbon project led by Varaha, an Asian carbon project developer.
The project, which is Mirova’s first carbon investment in India, will support the transition of over 337,000 smallholder farmers across 675,000 hectares in the Indian states of Haryana and Punjab, toward regenerative framing practices such as direct seeding of rice, crop residue management, and reduced tillage.
Mirova said that through these practices, the project aims to generate high-quality carbon credits and will use a revenue-sharing mechanism to ensure that farmers directly benefit from the sale of these credits.
The investment is being made as a co-investment through two funds within Mirova’s nature-based carbon strategy – the Climate Fund for Nature and the Orange Nature fund.
Asked what attracted Mirova to the project, Charlotte Lehmann, senior investment director for Mirova, told Impact Investor that Varaha combines scientific rigor with strong community impact. She said the company’s approach to regenerative agriculture aligns perfectly with Mirova’s nature-based carbon strategy of scaling high-integrity climate solutions while also improving rural livelihoods.
“The Kheti project is transformative in scope,” she said, highlighting the scale of the ambition, “[it] demonstrates how carbon finance can drive systemic change in agriculture.
“Varaha is Asia’s largest carbon project developer, active in India, Nepal, and Bangladesh. This is our first investment with them, and it opens the door to future collaborations across South Asia and potentially other regions where regenerative agriculture can deliver climate and social benefits,” she added.
Regenerative agriculture
Varaha was founded in 2022 to pioneer transformative climate solutions that build soil organic carbon, afforest agricultural lands, and generate biochar. The company specialises in designing and implementing high-integrity carbon projects that specifically empower smallholder farmers across South Asia, positioning smallholder agriculture as a way to remove greenhouse gas emissions from the atmosphere while also enhancing rural livelihoods.
Asked about the importance of regenerative agriculture in combating climate change, Lehmann said it was pivotal because it addresses both mitigation and adaptation.
“By restoring soil health and increasing organic carbon stocks, it transforms farmland into a carbon sink while improving biodiversity and water retention.”
She said the approach was essential to achieving climate goals, explaining that despite its potential, regenerative agriculture remains largely underestimated by most investors.
“Despite strong scientific evidence and co-benefits for ecosystems and communities, regenerative agriculture is often perceived as niche or high-risk. Mirova advocates for greater trust and transparency in voluntary carbon markets to unlock capital for these solutions,” she added.
Impact goals
Varaha’s digital platform enables real-time monitoring, reporting, and verification (MRV) to ensure transparency and traceability of climate and social outcomes and Lehmann said that the credits generated by the project would have to meet stringent standards for additionality, permanence, as well as robust MRV.
“Farmers share directly in revenue from credit sales, creating a strong incentive for long-term adoption of regenerative practices,” she added.
Beyond climate mitigation, the project is expected to support ecosystem regeneration, through enhanced soil health, improved biodiversity, reduced water consumption, and minimised chemical inputs. It is also expected to have a positive impact on local livelihoods and well-being through increased agricultural yields, lower input costs, improved air quality, and net job creation.
“Beyond carbon, we will track biodiversity, water resource management, and socio-economic indicators such as income stability. Our impact framework includes certification under Climate, Community & Biodiversity standards and aligns with our broader ESG commitments,” said Lehmann.
“Targets include scaling hectares under regenerative practices and improving farmer resilience,” she added.
Mirova said gender and inclusion were also key focal points, and that the project would include dedicated outreach to women farmers and support for female entrepreneurship in rural communities.
