“Bytes: Practical Research for CSR” is a series by Give Grants designed to decode and demystify the extensive social impact research and data available in the form of clear and actionable insights for CSR practitioners in India.”
Global temperatures have surpassed the 1.5°C threshold and are on course to exceed 2°C by 2030, a level of warming that carries severe ecological and economic risks. While tree plantation has been a widely promoted solution for carbon sequestration, its scalability and efficiency remain limited. It is time to also consider variants like agroforestry.
The Limitations of Traditional Tree Planting
India’s forests currently hold a carbon stock of 7 billion metric tons, sequestering approximately 703 million metric tons of CO₂ annually, according to the India State of Forest Report. However, this sequestration remains insufficient, covering only 32% of the country’s annual CO₂ emissions, which stand at 2.2 billion metric tons. The feasibility of large-scale afforestation as a climate solution becomes even more challenging when examined through sequestration potential per tree.
According to the USDA, a single tree absorbs around 22 kg of CO₂ per year. At this rate, 100 billion trees would need to be planted annually to offset India’s current emissions. Beyond the sheer scale of plantation, the long-term maintenance and survival of these trees pose significant logistical and financial challenges, making afforestation alone an impractical standalone solution to India’s carbon mitigation strategy.
Challenges Hindering Large-Scale Agroforestry Adoption
Key Advantages of Agroforestry
- Higher Carbon Sequestration Potential
- Research from ICAR estimates that agroforestry in India can sequester between 0.25 to 19.14 Mg C/ha/year—a significantly higher range than traditional monocultures.
- As per a meta-analysis Soil carbon stocks increase by an average of 21%, enhancing long-term carbon storage.
- Enhanced Biodiversity and Ecosystem Services
- As per a report published in school of Natural Resources, University of Missouri,Agroforestry systems support 50-80% of biodiversity levels found in natural forests.
- A global meta-analysis shows 68% higher species diversity, 50% reduction in soil erosion, and 46% increase in soil nitrogen availability.
- Agronomic Productivity and Economic Benefits
- In sub-Saharan Africa, agroforestry increased crop yields while maintaining critical ecosystem services.
- Studies in Europe demonstrate productivity gains of 36–100% depending on crop type and management practices.
- In the Philippines, smallholder farmers practicing agroforestry reported 42-137% higher earnings and improved food security.
- Resilience to Climate Variability
- Agroforestry systems buffer against extreme weather events, enhancing long-term agricultural stability.
- Mixed cropping and perennial vegetation reduce vulnerability to droughts and floods.
Challenges Hindering Large-Scale Agroforestry Adoption
Despite its advantages, agroforestry adoption remains limited due to structural barriers:
- High Initial Investment – Establishment costs are significant, with returns taking 3–8 years, compared to 1–2 years in conventional farming.
- Limited Access to Finance and Markets – According to an article on ScienceDirect, credit access remains a challenge, and market linkages for agroforestry products are underdeveloped.
- Knowledge Gaps – As highlighted in the Advances in Agroforestry book series, many farmers lack awareness of agroforestry techniques, and extension services remain inadequate.
- Perceived Financial Risk – A report states that farmers often view agroforestry as less profitable, despite studies proving otherwise
Strategic Interventions to Accelerate Agroforestry Adoption
Scaling agroforestry requires a coordinated effort from governments, businesses, and research institutions. The following interventions can de-risk adoption and unlock economic value:
1. Financial Incentives and Investment
- Governments can offer subsidies and tax incentives to offset establishment costs.
- Impact investors can fund agroforestry projects through green bonds and blended finance models.
2. Capacity Building and Training
- Public-private partnerships can scale farmer education initiatives.
- Extension services can integrate agroforestry best practices into mainstream agricultural training.
3. Market Development and Supply Chain Strengthening
- Strengthening value chains for agroforestry products (e.g., timber, fruits, and medicinal plants) can improve farmer profitability.
- Governments can implement minimum support price (MSP) mechanisms for key agroforestry commodities.
4. Payments for Ecosystem Services (PES)
- PES schemes can provide monetary incentives for carbon sequestration, biodiversity conservation, and water retention.
- In Costa Rica, PES programs increased tree planting due to financial incentives for watershed protection and soil conservation.
5. Policy and Regulatory Reforms
- Land rights policies should encourage long-term agroforestry investment, as seen in Peru’s agroforestry concessions model.
- Agricultural credit reforms can enable financing mechanisms tailored to agroforestry systems.
Unlocking Agroforestry’s Potential for Climate and Economic Resilience
While traditional tree planting remains an important climate action tool, agroforestry offers a more scalable, resilient, and economically viable solution. Addressing adoption barriers through financial incentives, knowledge dissemination, market development, and regulatory support can accelerate agroforestry expansion.
For policymakers and investors, integrating agroforestry into national climate strategies and investment portfolios presents a multi-benefit opportunity—enhancing carbon sequestration, boosting agricultural productivity, and strengthening rural economies.
[Infographic] Reevaluating Climate Mitigation Strategies: The Case for Agroforestry
