India's First Carbon Finance Deal: Iora Secures Rs 8.5 Crore for MegCare Agroforestry Program
A groundbreaking climate finance deal has been struck in India, with Iora Ecological Solutions securing Rs 8.5 crore ($1 million) in debt funding. The deal, underwritten against future Carbon Removal Units (CRUs), is one of the first of its kind in the country. The funds will support the MegCare program, aiming to restore degraded landscapes and improve rural livelihoods through sustainable agroforestry practices in Meghalaya.
The MegCare program, a 30-year-long community-led initiative, targets the sequestration of 25 million tonnes of CO2 across 1,50,000 hectares of land. It is expected to generate verifiable carbon credits (CRUs) which will be monetised in global carbon markets. The program is directly benefiting 80,000 smallholder farmers in Meghalaya, with the Government of Meghalaya aiming to restore the lands of its communities and ensure they get optimum value and returns for their climate action efforts.
The investment is supported by Rabo Foundation and Rabobank's ACORN platform, promoting climate-linked finance for smallholder agroforestry. Iora Ecological Solutions, Caspian Debt, and Rabobank ACORN are collaborating to explore innovative climate finance solutions, advancing ecosystem restoration and improving rural livelihoods in India. The debt funding was provided by Caspian Impact Investments, with no public information available about the name of the Business Head of Caspian Debt who facilitated the deal.
The successful closure of this debt deal marks a significant step towards promoting climate-linked finance in India. It demonstrates the potential of innovative financing mechanisms to support ecosystem restoration and improve rural livelihoods, while also generating valuable carbon credits. The MegCare program is set to make a substantial impact on Meghalaya's degraded landscapes and the lives of its smallholder farmers.
