Case Study
Developing a Green Economy in Meghalaya:
Financing Agroforestry
Nature-based Solutions for Climate Resilience
The “Meghalaya Carbon Agroforestry for Community Resilience and Ecosystems” (MegCare) project a joint initiative of the Government of Meghalaya, IORA Ecological Solutions, and Rabobank’s Acorn program, aims to promote sustainable agroforestry practices throughout the northeast Indian state of Meghalaya.
Carbon Removal through
Innovative Agroforestry
MegCare aims to utilize carbon finance to restore 100,000 hectares of degraded community owned land through agroforestry plantations and enhance 35,000 hectares of existing agroforestry through gap-filling interventions. These activities are strategically designed to ensure long-term ecological and economic benefits while enhancing community resilience to climate change.
These Agroforestry systems, in addition to sequestering and storing carbon, also help buffer against adverse impacts of climate change by enhancing nutritional security, enhancing recharge of spring sheds and promoting sustainable value chains for higher incomes.
Key Project Activities
Nursery Development
Project supports development of nearly 300 small and 100 high tech nurseries, supporting establishment of community based enterprise models to develop and operate these.
Agroforestry Plantations
The project has developed and approved, through extensive community and technical consultations, 9 Agroforestry models which include 27 Native forest tree species, along with 8 horticultural species and 18 agricultural crops and 10 aromatic grasses. Farmers with vacant land receive financial and technical assistance to establish new plantations and promote agroforestry practices, while existing plantations with low survival rates are rehabilitated through targeted gap-filling efforts. Rabobank is investing in the tree planting and allied activities in lieu of future returns from sale of Carbon Removal Units (CRUs).
CRU Issuance
High-quality Carbon Removal Units (CRUs) are generated from the restored landscapes. These CRUs are commercialized through Rabobank’s Acorn platform to provide a stable revenue stream for farmers, with 80% of the revenue being directly transferred to their accounts. Investments in the project are purely adjusted against CRU revenues, with no additional financial liability on the farmers and no charge on any other income they may derive from the Agroforestry projects.
Value Chain Development
Project supports development of value chains of different agri and non-timber forest products (NTFPs), supporting communities in value addition and links to profitable markets, along with supporting establishment of community based enterprise models.
Capacity Building
Farmers and community members receive training in nursery development, agronomy, pest management and other land management techniques. This equips them with the skills needed to maintain and protect plantations, ensuring long-term sustainability
This case study highlights the importance of increasing tree cover, particularly in non-forest landscapes such as agricultural areas, for carbon sequestration and enhanced livelihoods for smallholder farmers.
To ensure the effectiveness of projects efforts and assess their impact on the ground, it is important to implement robust and transparent monitoring and measurement systems. These systems are vital not only for internal assessments but also from an investor’s perspective, helping to manage risk, highlight project credibility, align with reporting standards and ensure that interventions are delivering tangible results.
In order to monitor tree survival and measure the amount of carbon sequestered by the trees planted in Meghalaya, we followed the process outlined below.
High-resolution images from MAXAR satellites (WorldView-2 and 3, GeoEye-1)
Ortho-rectification to eliminate distortions
Satellite Data Acquisition
Satellite Data Acquisition
Selection of NIR, Red, and Green bands
Pan-sharpening for enhanced detail and increase resolution
Classification and delineation of individual tree crowns using machine learning
Remote Sensing and Image Processing
Use of deep learning models (e.g., ResNet) to segment and identify tree crowns
Generation of tree crown polygons
Calculation of crown projected area (CPA)
Machine Learning
Ground calibration: measurement of tree crown area (CA) and stem diameter (DBH) from sample plots
Geo-tagging and tree identification with GPS
Field Data Collection
Field Data Collection
Regression allometry model relating tree crown area (CPA) to stem diameter (DBH) to estimate DBH from the satellite measurements of crown dimensions
Use remote sensing and allometry estimated DBH calculate biomass of every tree.
Allometric Model Development
Use of DBH-based equations (e.g., from the Forest Survey of India) to estimate tree biomass
Carbon is estimated as half of biomass
Carbon Estimation
High-resolution images from MAXAR satellites (WorldView-2 and 3, GeoEye-1)
Ortho-rectification to eliminate distortions
Satellite Data Acquisition
Satellite Data Acquisition
Selection of NIR, Red, and Green bands
Pan-sharpening for enhanced detail and increase resolution
Classification and delineation of individual tree crowns using machine learning
Remote Sensing and Image Processing
Use of deep learning models (e.g., ResNet) to segment and identify tree crowns
Generation of tree crown polygons
Calculation of crown projected area (CPA)
Machine Learning
Ground calibration: measurement of tree crown area (CA) and stem diameter (DBH) from sample plots
Geo-tagging and tree identification with GPS
Field Data Collection
Field Data Collection
Regression allometry model relating tree crown area (CPA) to stem diameter (DBH) to estimate DBH from the satellite measurements of crown dimensions
Use remote sensing and allometry estimated DBH calculate biomass of every tree.
Allometric Model Development
Use of DBH-based equations (e.g., from the Forest Survey of India) to estimate tree biomass
Carbon is estimated as half of biomass
Carbon Estimation
We will carry out periodic monitoring by revisiting the project sites with updated satellite data to track tree growth and biomass changes, helping to updating the carbon sequestration estimates periodically.
Our analysis shows that 26,100 ha of agroforestry in the state has an estimated 1,789,936 tons of carbon (CO2e –Carbon dioxide equivalent) stock, which represents about 0.0045% of global annual CO2 emissions.
Project Highlights
MegCare Project:
Meghalaya, India
The MegCare project exemplifies a comprehensive and inclusive approach to addressing the twin challenges of environmental degradation and socio-economic vulnerability in Meghalaya. By integrating sustainable agroforestry practices with community welfare, the project highlights the potential of nature-based solutions in driving both ecological restoration and climate resilience.
Key Findings
Holistic Restoration and Biodiversity Enhancement:
MegCare demonstrates the effectiveness of agroforestry in restoring degraded landscapes. The project’s focus on planting a number of native species ensures biodiversity conservation, improved soil health, and enhanced ecosystem services, such as carbon sequestration and water retention.
02
Economic Empowerment through Carbon Credits:
The innovative use of Carbon Removal Units (CRUs) provides farmers with a stable income source. By guaranteeing a minimum of EUR 20 per CRU and sharing 80% of carbon revenue with communities, the project offers a strong financial incentive for participation, enabling sustainable livelihoods.
03
Community-Driven Implementation:
MegCare’s participatory approach actively involves local communities, particularly women and youth, in nursery management, plantation, and restoration efforts. This inclusive strategy fosters ownership, builds capacity, and strengthens community resilience to climate impacts.
04
Alignment with National and Global Goals:
The project aligns with India’s commitments to restore 26 million hectares of degraded land by 2030 and contributes to Sustainable Development Goals (SDGs), particularly those focused on climate action, life on land, and sustainable livelihoods.
05
Carbon Stock and Sequestration Potential:
The project has on an average carbon stock of 68 tons CO2e per Ha. Through project various investments, we will ensure the maintenance and long-term sustainability of these trees, helping to preserve this carbon stock. Additionally, the plantation of new trees across 100,000 Ha will lead to the average annual sequestration of 6 tons of carbon (CO2e) per Ha.
Conclusion
MegCare sets a benchmark for integrated climate action, combining environmental restoration with economic and social benefits. Its collaborative model, involving government, technical experts, and financial partners, highlights the importance of partnerships in scaling impactful interventions. The emphasis on agroforestry as a sustainable land-use practice offers a replicable framework for other ecologically vulnerable regions. By leveraging traditional knowledge and empowering local communities, the project underscores the critical role of inclusive, community-centric approaches in achieving long-term sustainability and resilience.
