Cotton Carbon Credits as a forward-looking solution for agriculture
Aid by Trade Foundation, International Cotton Advisory Committee and bizpando start cooperation
The bizpando AG has joined forces with the Aid by Trade Foundation (AbTF) and the International Cotton Advisory Committee (ICAC) to launch a project to promote carbon credits in cotton production. The aim is to empower African smallholder farmers through effective agricultural techniques and digital solutions to improve soil quality, sequester COâ‚‚ and create additional sources of income.
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As part of the newly concluded cooperation, African farmers who grow cotton in accordance with the Cotton made in Africa (CmiA) standard benefit from additional income from the sale of carbon credits. At the same time, their costs are lowered as the use of pesticides and fertilisers can be reduced. In addition, improved soil quality and the water-retaining properties of biochar lead to higher agricultural yields.
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The partners plan to expand the bizpando platform technically to include digital solutions for land surveying and payment methods, acquire certifications and prepare local measures such as training and further collaboration with stakeholders. The first carbon credits are to be generated by 2026 at the latest, and local activities have already been initiated.
Additional income for farmers in Africa and better soil quality
By using sustainable agricultural strategies such as the use of biochar, minimal tillage and the cultivation of cover crops, up to 5.75 tonnes of COâ‚‚ per hectare per year can be sequestered in the soil. (1) This potential not only offers important opportunities for climate protection but also brings considerable economic benefits for producers.
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Our work is grounded in the principles of climate-smart agriculture, which not only protects the environment and conserves resources but also enhances the productivity of cotton producers.
Beyond the licensing income generated from Cotton made in Africa-verified cotton, collaborations like the one with bizpando foster sustainable opportunities for smallholder farmers in Africa.
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Tina Stridde
Managing Director Aid by Trade Foundation
Climate protection through carbon credits
Our Carbon Credit Project Methodology
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Biochar: Climate Protection with Social and Environmental Impact
Wikimedia Commons
ICAC
Biochar is a carbon-rich, highly porous substance made through pyrolysis – the heating of plant residues like maize, cotton, or sunflower stalks in the absence of oxygen. It improves soil health by enhancing its structure, retaining water and nutrients, and supporting the growth of beneficial microorganisms.
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Because biochar stores carbon in the soil for over 100 years, it qualifies for 100% COâ‚‚ equivalent credits. As a result, it is officially recognized by the United Nations for use in soil improvement programs, and biochar-based carbon credits are valued especially highly.
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When combined with social impact – for example by using farm residues in developing regions – these carbon credits receive even greater recognition on voluntary carbon markets. In addition to environmental benefits, biochar helps lower farming costs while increasing yields, making it a financially and ecologically sustainable solution.
Less effort and cost for watering:
Retains water
Reduction of fertilizers:
Retains nutrients
Lesser need for pesticides:
Supports microbial growth
Bokashi Compost: Nutrient-Rich Fermentation for Healthy Soils
ICAC
Bokashi is a composting method that uses anaerobic fermentation to transform organic waste – such as kitchen scraps and agricultural residues – into nutrient-rich compost within just 2 to 4 weeks. This process relies on effective microorganisms (EM-1) to speed up decomposition, enrich the soil, and support plant health.
Bokashi compost has a naturally low pH of around 3.5, making it a perfect complement to alkaline biochar. According to the International Cotton Advisory Committee (ICAC), combining Bokashi with biochar in the right ratio results in a balanced soil pH of approximately 6.5 – ideal for most crops. This combination not only stabilizes the pH but also enhances microbial activity and provides essential nutrients to the soil.
Minimum Tillage: Preserving Soil Health with Less Effort
ICAC
Minimum tillage is an agricultural practice that reduces soil disturbance by avoiding deep ploughing. Instead, light tillage or no-till methods are used to incorporate plant residues and prepare the seedbed. This approach preserves the natural soil structure, improves water retention, and protects against erosion.
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Minimum tillage also reduces fuel consumption and machinery wear, lowering the overall cost of cultivation. By maintaining soil biodiversity and supporting microbial life, it contributes to long-term soil fertility and resilience, making it a key strategy in regenerative agriculture.
Cover Crops: Growing Soil Fertility Naturally
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Wikimedia Commons
Cover crops are plants cultivated not for harvest, but to improve soil health. These crops – such as clover, vetch, or radish – are grown between main crop cycles and play a vital role in regenerating the soil. Their roots loosen compacted soils, improve water infiltration, and increase nutrient availability.
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Some cover crops, like legumes, fix nitrogen from the air, enriching the soil naturally. Others help suppress weeds and protect against erosion. By enhancing soil structure and supporting microbial life, cover crops contribute to long-term productivity and resilience in agriculture.
Technological implementation by bizpando
bizpando plays a central role in the digital implementation of this project. A GPS-supported measurement system is being developed to map the areas under cultivation of smallholder farmers in such a way that double counting of areas can be ruled out. The platform will also enable digital recording to validate cotton production to reliably verify the origin and quantity of carbon credits. The bizpando platform will be used to issue the necessary certificates for the carbon credits, market them directly and ensure that proceeds are paid out directly to the farmers.
Farmland measurement
Provide GPS based mobile application to measure farmland (once in combination with the training)
Social and Environmental Impact
The cotton carbon credit cooperation tackles known issues in African cotton farming
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Small cotton farmers in Africa are typically poor
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African cotton farmland is typically of lower quality
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Due to several vermins in Africa, the usage of pesticides increases
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Cotton plants have a high demand on water
10 Sustainable Development Goals are positively influenced by our project
Additional income and reduced cost for fertilizer, pesticides will increase income for the farmer and region
Edible cover and catch crops (legumes) increase food diversity and significantly expand arable land.
Healthy food and drinking water significantly improve the quality of life
Farmer training and knowledge is at a very high international level
Healthy soil leads to clean drinking water and improves underground water cycles. Water is stored in the soil and released in a purified form, as less water is needed for cotton plants.
As additional income will flow into the region/ country/ continent, the surplus will generate economic growth on these levels and not only a shift in recipients
Reduced need for water, optimized biodiversity, minimum tillage to ensure healthy soil
The CO2 reduced is significant so not only the emissions of the farming can be compensated, but additional CO2 can be sequestered for more than 100 years
The used procedures will increase the number of microorganisms in the soil significantly so the soil quality will increase
ICAC, CMIA, bizpando and a lot of local industry, worker organizations etc. work together
FAQ about the Cotton Carbon Credits Cooperation
What is the aim of this cooperation?
The aim of the cooperation is to support African smallholder farmers who grow cotton in accordance with the Cotton made in Africa standard by providing additional sustainable agricultural techniques and digital solutions for cotton cultivation to improve soil quality, sequester COâ‚‚ and tap into additional sources of income through the trade in carbon credits.
Who benefits from this project?
Smallholder farmers in Africa:
- Additional income through the sale of carbon credits
- Lower costs through reduced use of pesticides and fertilisers
- Improved soil quality and more stable yields through soil-building methods
- Increased water retention capacity of the soil and thus improved plant nutrition
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What impact does this cooperation have?
- Climate protection through long-term COâ‚‚ storage (SDG 13)
- Promoting sustainable agriculture by achieving improved soil quality, higher yields and greater drought resistance through the project's methods (SDG 15, SDG 2)
- Increased income for farmers in Africa and financial inflows to Africa (SDG 1 and SDG 8)
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Who else could benefit from the carbon credits?
In principle, any company that would like to implement corporate responsibility on a mandatory or voluntary basis can acquire carbon credits. In addition to simply offsetting CO2 emissions through the actual long-term sequestration of CO2, the project provides sustainable support for several SDGs (UN Sustainable Development Goals). Buyers or investors in the following categories, among others, can therefore benefit from this project:
- Textile companies and fashion brands with sustainability goals that use Cotton made in Africa cotton
- Companies in the textile industry that want to operate sustainably
- Companies with climate protection commitments
- Companies that have committed to reducing their GHG emissions in line with the SBTi targets
- Institutional investors with an ESG focus
What are carbon credits and how do they work?
Carbon credits are tradable certificates that companies or organisations can purchase to offset their COâ‚‚ emissions. They are based on verifiable COâ‚‚ savings or, as in our case, COâ‚‚ removal, in our case through sustainable agriculture and biochar. The carbon credits from this project are expected to be tradable on the voluntary certificate market from 2026.
What is the technological basis for implementation?
UMa Soft's development platform for digital transformation CrossLoom is bizpando's technology basis for rapid development. The plan is to implement it as an app(s) for farmers and managers. A so-called dMRV (digital measurement, reporting and verification tool) is being developed. The digital measurement, reporting and verification technology (dMRV) has the potential to revolutionise the functioning of the voluntary carbon market (VCM) by ensuring greater transparency, efficiency and traceability.
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Source (1): Intergovernmental Panel on Climate Change (IPCC) 2019: Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Volume 4: Agriculture, Forestry and Other Land Use. Appendix 4: Method for Estimating the Change in Mineral Soil Organic Carbon Stocks from Biochar Amendments: Basis for Future Methodological Development.
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bizpando AG
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