Nature Investments: Case Study
Developing a Green Economy in Meghalaya:
Financing Agroforestry
Nature-based Solutions for Climate Resilience
In January 2024, the “Meghalaya Carbon Agroforestry for Community Resilience and Ecosystems” (MegCare) project was launched as a joint initiative of the Government of Meghalaya, Iora Ecological Solutions, and Rabobank’s Acorn program. The project is built on a structured, four-tiered community engagement approach, and is aimed at promoting sustainable agroforestry practices amongst smallholder farmers across the northeastern Indian state of Meghalaya.
The MegCare project exemplifies a comprehensive and inclusive approach for 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.
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
MegCare is built on the momentum created by a recently concluded World Bank afforestation project, which left behind a cadre of trained local youth in key areas such as farmer engagement, land mapping, and plantation techniques. These individuals had already developed strong relationships within their communities and were proficient in using digital field tools.
Recognising this expertise, MegCare engaged these individuals as Agroforestry Carbon Associates (ACAs). These ACAs received additional training on agroforestry, climate change mitigation and adaptation and the basics of carbon finance, and were equipped with the project’s digital tools – Field Sense and Acorn’s Data Collection Tool. Their roles have extended beyond technical tasks to spearheading community awareness campaigns across their respective home districts.
Currently, the project has inducted around 60 ACAs across all district and blocks of Meghalaya, supported by two Regional Coordinators, for the Khasi-Jaintia and Garo regions respectively. Engagement with stakeholders has taken place at the district level, involving Nokmas (traditional village heads) and Headmen, private landowners, representatives from the Meghalaya Basin Development Authority (MBDA), Autonomous District Councils (ADCs – traditional parallel governance structure in Meghalaya) and various State government officials.
Farmer parcel onboarding, eligibility analysis and mapping
Following initial awareness meetings, our ACAs follow up with interested farmers who have given consent to be contacted and assessed for onboarding.
Eligibility Criteria
- Plantation Age: Trees planted must less than 5 years old – so for onboarding in
2025, plantations carried out in 2020 and beyond are eligible - Land Ownership: Farmers must present valid land documents or No Objection
Certificates (NOCs) from the Nokma/ Headman - Land Size:
- Private lands: Between 0.1 to 10 hectares.
- Community lands: No size limit.
- Tree Density: Minimum of 300 trees per hectare, preferably with mixed species.
Canopy Cover: Existing tree cover should not exceed 40%.
For eligible farmers, the ACAs:
- Record farmer details using a digital data collection app.
- Digitize the land parcel boundary using an inbuilt GPS mapping tool in the app.
- Collects photocopies of identity proof and bank account details for verification.
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.
MRV
The ACAs have been trained on a range of quantitative and qualitative research skills, including assessing tree survival, measuring carbon (above- and below-ground biomass), and verifying remote-sensing imagery. This offers a cost-effective approach to gathering locally sourced data, fostering equitable benefit sharing, and enhancing the social and environmental co-benefits of Agroforestry.
This case study highlights the importance of increasing tree cover, particularly in non-forest landscapes such as agricultural areas, for both carbon sequestration and enhanced livelihoods of smallholder farmers.
To ensure the effectiveness of 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 risks, highlight project credibility, align with reporting standards and ensure that interventions are delivering tangible results.
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.
Acorn’s Strategic Value in the Nature-based Solutions Ecosystem
This Nature Portal outlines the financial, environmental, and strategic rationale for investing in Nature-based Solutions (NbS), such as reforestation, sustainable land management, and agroforestry. Within this global movement, Acorn stands out as a specialized and operationally mature platform that translates these theoretical opportunities into measurable, marketable, and socially inclusive climate solutions.
Proven Scalable Model: Agroforestry as a Nature-based Solution
Acorn’s focus on agroforestry with smallholder farmers is one of the highest-impact nature-based strategies for climate mitigation. Acorn and the MegCare project exemplify how promoting tree plantation in agricultural landscapes not only captures carbon but also supports food and nutritional security, improves soil health, and diversifies farmer incomes. This dual benefit system makes this approach robust, practical, and scalable.
De-risking for Investors and Buyers
Where many nature investments struggle with verification, Acorn’s Plan Vivo-certified CRUs offer transparency, traceability, and third-party validation. This is critical in a carbon market increasingly scrutinized for greenwashing. The integration of satellite monitoring and machine learning ensures measurable impact, highlighting the importance for data-driven investments. Ensuring transparency and traceability offers buyers clear evidence of impact, a competitive advantage in markets demanding reliable ESG reporting.
Equitable Benefit Sharing
Its structured partnership model – connecting smallholders with corporate buyers via platforms like Rabobank’s Acorn – ensures that CRU revenue flows ethically and securely, without imposing financial risks on farmers. Acorn’s role as a “Carbon Exchange Gateway” enables smallholders to access premium carbon markets that would otherwise be closed to them.
Alignment with Corporate and Government Climate Strategies
Acorn is collaborating with corporations seeking insetting solutions – embedding carbon removals within their own value chains. It also offers governments a pathway to achieve Nationally Determined Contributions (NDCs) under the Paris Agreement, particularly in the Global South where Nature-based Solutions are most viable.
Project Summary
Holistic Restoration and Biodiversity Enhancement:
MegCare demonstrates the effectiveness of agroforestry in restoring degraded landscapes. The project’s focus on planting native species ensures biodiversity conservation, improves soil health, and enhances ecosystem services, such as carbon sequestration and water retention.
02
Economic Empowerment through Carbon Credits:
The use of Carbon Removal Units (CRUs) provides farmers with a stable income source. By guaranteeing a minimum of EUR 20 per CRU (in June 2025, CRUs were sold for EUR 40 each) and always sharing 70% of carbon revenue with communities, the project offers a strong financial incentive for participation.
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 commitment to restore 26 million ha of degraded land by 2030 and contributes to multiple 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 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 and enhancement of 35,000 ha will lead to the average annual sequestration of 6 tons of carbon (CO2e) per ha.
06
Advocating for Policy Change:
MegCare can further amplify its impact by advocating for agroforestry-friendly policies and educating consumers about the benefits of nature-based carbon removal. This positions Iora and Acorn as a leader, expanding both political and market support for nature investments.
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.
To read more about Developing a Green Economy in Meghalaya: Financing Agroforestry download the entire case study
Download PDF
Nature Investments: Case Study
Developing a Green Economy in Meghalaya:
Financing Agroforestry
Nature-based Solutions for Climate Resilience
In January 2024, the “Meghalaya Carbon Agroforestry for Community Resilience and Ecosystems” (MegCare) project was launched as a joint initiative of the Government of Meghalaya, Iora Ecological Solutions, and Rabobank’s Acorn program. The project is built on a structured, four-tiered community engagement approach, and is aimed at promoting sustainable agroforestry practices amongst smallholder farmers across the northeastern Indian state of Meghalaya.
The MegCare project exemplifies a comprehensive and inclusive approach for 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.
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
MegCare is built on the momentum created by a recently concluded World Bank afforestation project, which left behind a cadre of trained local youth in key areas such as farmer engagement, land mapping, and plantation techniques. These individuals had already developed strong relationships within their communities and were proficient in using digital field tools.
Recognising this expertise, MegCare engaged these individuals as Agroforestry Carbon Associates (ACAs). These ACAs received additional training on agroforestry, climate change mitigation and adaptation and the basics of carbon finance, and were equipped with the project’s digital tools – Field Sense and Acorn’s Data Collection Tool. Their roles have extended beyond technical tasks to spearheading community awareness campaigns across their respective home districts.
Currently, the project has inducted around 60 ACAs across all district and blocks of Meghalaya, supported by two Regional Coordinators, for the Khasi-Jaintia and Garo regions respectively. Engagement with stakeholders has taken place at the district level, involving Nokmas (traditional village heads) and Headmen, private landowners, representatives from the Meghalaya Basin Development Authority (MBDA), Autonomous District Councils (ADCs – traditional parallel governance structure in Meghalaya) and various State government officials.
Farmer parcel onboarding, eligibility analysis and mapping
Following initial awareness meetings, our ACAs follow up with interested farmers who have given consent to be contacted and assessed for onboarding.
Eligibility Criteria
- Plantation Age: Trees planted must less than 5 years old – so for onboarding in
2025, plantations carried out in 2020 and beyond are eligible - Land Ownership: Farmers must present valid land documents or No Objection
Certificates (NOCs) from the Nokma/ Headman - Land Size:
- Private lands: Between 0.1 to 10 hectares.
- Community lands: No size limit.
- Tree Density: Minimum of 300 trees per hectare, preferably with mixed species.
Canopy Cover: Existing tree cover should not exceed 40%.
For eligible farmers, the ACAs:
- Record farmer details using a digital data collection app.
- Digitize the land parcel boundary using an inbuilt GPS mapping tool in the app.
- Collects photocopies of identity proof and bank account details for verification.
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.
MRV
The ACAs have been trained on a range of quantitative and qualitative research skills, including assessing tree survival, measuring carbon (above- and below-ground biomass), and verifying remote-sensing imagery. This offers a cost-effective approach to gathering locally sourced data, fostering equitable benefit sharing, and enhancing the social and environmental co-benefits of Agroforestry.
This case study highlights the importance of increasing tree cover, particularly in non-forest landscapes such as agricultural areas, for both carbon sequestration and enhanced livelihoods of smallholder farmers.
To ensure the effectiveness of 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 risks, highlight project credibility, align with reporting standards and ensure that interventions are delivering tangible results.
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.
Acorn’s Strategic Value in the Nature-based Solutions Ecosystem
This Nature Portal outlines the financial, environmental, and strategic rationale for investing in Nature-based Solutions (NbS), such as reforestation, sustainable land management, and agroforestry. Within this global movement, Acorn stands out as a specialized and operationally mature platform that translates these theoretical opportunities into measurable, marketable, and socially inclusive climate solutions.
Proven Scalable Model: Agroforestry as a Nature-based Solution
Acorn’s focus on agroforestry with smallholder farmers is one of the highest-impact nature-based strategies for climate mitigation. Acorn and the MegCare project exemplify how promoting tree plantation in agricultural landscapes not only captures carbon but also supports food and nutritional security, improves soil health, and diversifies farmer incomes. This dual benefit system makes this approach robust, practical, and scalable.
De-risking for Investors and Buyers
Where many nature investments struggle with verification, Acorn’s Plan Vivo-certified CRUs offer transparency, traceability, and third-party validation. This is critical in a carbon market increasingly scrutinized for greenwashing. The integration of satellite monitoring and machine learning ensures measurable impact, highlighting the importance for data-driven investments. Ensuring transparency and traceability offers buyers clear evidence of impact, a competitive advantage in markets demanding reliable ESG reporting.
Equitable Benefit Sharing
Its structured partnership model – connecting smallholders with corporate buyers via platforms like Rabobank’s Acorn – ensures that CRU revenue flows ethically and securely, without imposing financial risks on farmers. Acorn’s role as a “Carbon Exchange Gateway” enables smallholders to access premium carbon markets that would otherwise be closed to them.
Alignment with Corporate and Government Climate Strategies
Acorn is collaborating with corporations seeking insetting solutions – embedding carbon removals within their own value chains. It also offers governments a pathway to achieve Nationally Determined Contributions (NDCs) under the Paris Agreement, particularly in the Global South where Nature-based Solutions are most viable.
Project Summary
01
Holistic Restoration and Biodiversity Enhancement:
MegCare demonstrates the effectiveness of agroforestry in restoring degraded landscapes. The project’s focus on planting native species ensures biodiversity conservation, improves soil health, and enhances ecosystem services, such as carbon sequestration and water retention.
02
Economic Empowerment through Carbon Credits:
The use of Carbon Removal Units (CRUs) provides farmers with a stable income source. By guaranteeing a minimum of EUR 20 per CRU (in June 2025, CRUs were sold for EUR 40 each) and always sharing 70% of carbon revenue with communities, the project offers a strong financial incentive for participation.
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 commitment to restore 26 million ha of degraded land by 2030 and contributes to multiple 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 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 and enhancement of 35,000 ha will lead to the average annual sequestration of 6 tons of carbon (CO2e) per ha.
06
Advocating for Policy Change:
MegCare can further amplify its impact by advocating for agroforestry-friendly policies and educating consumers about the benefits of nature-based carbon removal. This positions Iora and Acorn as a leader, expanding both political and market support for nature investments.
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.
To read more about Developing a Green Economy in Meghalaya: Financing Agroforestry download the entire case study
Download PDF
