Clean Cooking as a Carbon Opportunity: How Projects Generate Impact, Income and Verifiable Emissions Reductions

Clean-cooking projects can produce high-integrity emission reductions (ERs) only when developers solve three hard problems together: a defensible baseline, objective evidence of sustained adoption (not just distribution), and an audit-grade MRV system. Newer methodologies and MRV guidance now favour metered and sensor-backed approaches (VM0050, Gold Standard’s metered methodology, and Clean Cooking Alliance templates). Ignore this shift — rely on surveys alone — and your credits will be risky, discounted, or invalidated. If Anaxee designs projects around measurable sustained use (SUMs + meters), solid additionality evidence (especially in India’s PMUY context), and conservative accounting, the results are bankable and valuable to buyers.


1. Why clean cooking still matters (and why carbon finance is useful)

Taking the data of Beneficiary while Distributing the Improved Cookstove in Clean Cooking Project in India

Around the world, billions cook on polluting fuels (wood, charcoal, dung, kerosene). The harms are multiple: household air pollution and associated health burdens (disproportionately on women and children), time lost collecting fuel, pressure on local biomass stocks, and greenhouse gas emissions from inefficient combustion. In India, policy has massively expanded LPG access through programmes like Pradhan Mantri Ujjwala Yojana (PMUY), but access frequently does not equate to exclusive or sustained use — stove-stacking (using multiple cook technologies) is common. That gap — converting access into sustained clean-fuel use — is precisely where targeted carbon finance can help by underwriting behaviour-change, refills affordability, or technology maintenance. But funds must be tied to measurable, verifiable outcomes.


2.What clean-cooking carbon projects are actually selling

These projects sell avoided emissions — reductions in GHGs compared to a baseline where households continue to use more carbon-intensive fuels or inefficient stoves. Important clarifications:

-These are not carbon removals; permanence concerns are about sustained use, not geological storage.

-Credibility rests on additionality (would the reduction have happened without the project?), accuracy (are the reductions measured correctly?), and traceability (is there a clear audit trail of evidence?).

-Standards now require higher measurement fidelity; metered and stove-sensor approaches are fast becoming the preferred path for high-integrity claims.


3. Major project archetypes and their measurement implications

Not every cookstove project is the same. Each model has distinct MRV needs and transaction costs.

  1. Improved biomass cookstoves (ICS) — cheaper hardware replacing open fires. MRV challenge: objectively proving sustained use, since distribution often vastly overstates actual emission reductions.

  2. Fuel-switch projects (LPG, electricity, biogas) — replace biomass/fossil fuels with cleaner fuels. MRV challenge: demonstrate sustained fuel consumption (refill frequency, electricity kWh, or biogas production/use). Metering/purchase logs are high-value evidence.

  3. Advanced biomass & pellets — require supply-chain documentation to ensure feedstock sustainability and avoid leakage.

  4. Community-scale biogas — methane capture + use; MRV must quantify substitution versus baseline manure handling and open-fire use.

Higher measurement fidelity (meters, SUMs) usually increases costs but reduces uncertainty and raises buyer confidence — and thus price.


4. Baseline and additionality: the real accounting work

Baselines capture the counterfactual — what households would have done absent the project. With stove-stacking common, a naive baseline (e.g., “this household had a smoky stove”) is not enough. Typical baseline approaches:

-Survey-based baseline: household-reported fuel use and stove types. Cheap but prone to social-desirability and recall bias.

-Observed baseline: enumerator observation of stove type and fuel stores. Useful but limited for quantifying hours-of-use.

-Metered baseline: where possible (LPG refills, electricity meters), provides objective consumption history. Preferred when feasible.

Additionality in India is the hard edge-case because PMUY and related subsidies have changed the policy landscape. PMUY has delivered tens of millions of LPG connections — the program data show very large coverage and rising refill rates — which means carbon projects must demonstrate additional behaviour (e.g., increased refill frequency, bridging affordability gaps, stimulating exclusive use, or targeting households not reached by government programmes). Relying on distribution of an LPG cylinder alone without proving sustained refills will not pass muster. Use government data to justify your additionality assumptions and be conservative.


5. The MRV reality: what verifiers now expect

Beneficiary and Digital Runner showing thumbs up after Receiving Improved Cookstove under Anaxee's Clean Cooking Initiative

Standards (Verra, Gold Standard) and the Clean Cooking Alliance have moved decisively toward objective measurement. The key MRV components every credible project must have:

5.1 Stove Use Monitors (SUMs)

SUMs — small temperature/data loggers affixed to stoves — objectively record stove usage events and durations. They are the most defensible way to demonstrate ongoing use for non-metered stoves. Deploy SUMs on a statistically valid, stratified sample and combine with surveys to extrapolate to the whole cohort. SUMs help detect a Hawthorne effect, tampering, and temporal adoption patterns. Clean Cooking Alliance protocols explicitly recommend SUMs as best practice for usage verification.

5.2 Metered approaches for fuel-switch projects

For LPG or electrical cooking projects, purchase records, cylinder refill logs, or electricity meters are the best evidence. Gold Standard’s metered methodology and Verra’s VM0050 explicitly recognise and prefer metered data where feasible because it significantly reduces uncertainty. If you operate in a PMUY context, work with refill retailers or LPG OMCs to access anonymised refill frequency data for beneficiaries where possible.

5.3 Surveys, KPTs and CCTs

Kitchen Performance Tests (KPTs) and Controlled Cooking Tests (CCTs) remain useful for labelling device efficiency and translating device performance into fuel savings under controlled conditions. But field-level sustained use needs SUMs/meter evidence, backed by representative household surveys capturing stacking behaviour and qualitative reasons for non-use. Standards increasingly require the mixed-method approach: sensors + surveys + purchase records.

5.4 Sampling design and QA/QC

Design your sampling to meet verifier confidence thresholds. Use stratified random sampling by socio-economic status, geography, household size, and initial baseline stove/fuel type. Train enumerators intensively, keep GPS-tagged photos, and maintain raw data files with version control. Verifiers will demand original SUMs logs, raw survey forms, enumerator training records, and a documented data cleaning process — so treat data management as a compliance function, not an afterthought.


6. A practical MRV protocol (copy-paste-ready checklist)

Anaxee's Digital Runner taking Digital information/Data of Women rural women for Rural Marketing

This is operational — adopt it and modify per project specifics.

Monitoring schedule

-Baseline: SUMs (sample) + survey (full) + fuel purchase data collection (if available).

-Early follow-up: 3 months post-distribution (adoption signals).

-Core monitoring windows: 6, 12, 24 months (SUMs + surveys).

-Annual reporting thereafter; scheduled SUMs redeployments for sample refresh every 18–24 months.

Data to collect

-Raw SUMs temperature logs (time-stamped).

-Fuel purchase/refill receipts or utility meter logs.

-Household survey results (baseline and follow-ups).

-Pictorial proof (GPS-tagged photos) and enumerator visit logs.

-Device serial numbers, beneficiary registry, installation logs.

Quality assurance

-Double-entry or automated ingest from SUMs into central repository.

-Supervisor spot-check on 10% of visits.

-Tamper-detection (SUMs battery/connection checks) plus periodic device recalibration.

-Maintain an audit folder with all raw and derived files for VVB access.

Use this as your MRV spine and then add PDD-specific formulas, e.g., substitution factors, emission factors, and conversion tables.


7. Risk, integrity, and the reputational minefield

Cookstove carbon credits faced strong academic and media scrutiny for overstated claims in the past. That scrutiny forced standards bodies and the Integrity Council (ICVCM) to raise the bar — rejecting simplified, survey-only methodologies and favouring metered/measured approaches. If your project relies on distribution records or optimistic usage assumptions without sensor or meter backing, expect deep discounting or rejection by high-integrity buyers. Conservative accounting and transparent evidence are not optional — they are business hygiene.

Common failure modes and countermeasures:

-Distribution ≠ use: countermeasure — conditional payments tied to verified use (SUMs/meter evidence).

-Double-counting with government programmes: countermeasure — explicit PDD documentation showing how your intervention goes beyond government provision (e.g., refill subsidies, maintenance, user training targeting refill behaviour).

-Sample bias and social desirability: countermeasure — objective sensors, independent enumerators, and careful sampling.

-Under-budgeting MRV & VVB costs: countermeasure — model verification cycles early and build VVB engagement into project timelines and budgets.


8. Operational blueprint: from procurement to verified credits

A carbon-grade cookstove programme is first and foremost an operational delivery challenge. Below is a sequence that reduces MRV friction and raises buyer confidence.

  1. Pilot and acceptability testing: test device fit for purpose (user ergonomics, fuel needs, cooking styles). Document pilot KPTs/CCTs and field user feedback.

  2. Procurement & performance certification: procure devices with lab performance certificates (WHO or Clean Cooking Alliance ratings). Retain test reports and device warranty info.

  3. Beneficiary registry and unique IDs: register beneficiaries with GPS, ID, device serial numbers, and signed consent forms. This registry is the backbone of traceability.

  4. Distribution + user training: ensure each household receives hands-on training. Capture attendance and photo proof.

  5. MRV deployment: deploy SUMs/metering devices on a validated sample and collect baseline purchase/consumption evidence. Keep raw files in a version-controlled repository.

  6. Post-distribution follow-up & maintenance: scheduled visits at 3, 6, 12 months with maintenance support. Use conditional incentive payments to encourage verified use.

  7. VVB engagement & pre-audit: bring in an independent verifier early to review MRV protocols and pilot data — this reduces rework at validation.

If any of these steps are skipped, you increase risk of audit friction and potential invalidation.


9. Budget reality check (be conservative)

Many projects misprice themselves by underestimating MRV and verification costs. A realistic split:

-Hardware & distribution: 40–55%

-Behaviour-change & after-sales: 10–20%

-Monitoring & MRV (incl. SUMs/metering): 10–25%

-VVB & verification cycles: 8–15%

-Programme management & contingency: 5–10%

If you trim MRV to save costs, you will likely lose more in discounts or failed validations. Build MRV and VVB costs into the unit economics up front.


10. Commercialisation: what buyers will and won’t pay for

Buyers have become pickier. What commands a premium:

-Conservative, sensor-backed ERs. Sensors/metering reduce uncertainty and attract quality buyers.

-Transparency & audit trails. Raw SUMs logs, sample survey files, and enumerator training records available on request.

-Co-benefit evidence. Documented health outcomes, time savings, and gendered benefits enhance buyer interest in impact-oriented portfolios.

-Additionality clarity. Show how the project adds beyond government programmes (e.g., refill affordability or exclusive-use incentives where PMUY provided hardware).

Buyers will discount or avoid projects that rely exclusively on distribution or surveys and cannot produce raw sensor/meter files.


11. Aggregation & programme-based registration: scale without losing discipline

Small projects are uneconomic if each carries full VVB costs. Aggregation (pooling multiple small interventions under a programme approach) makes sense — but governance is everything: who signs sales contracts, how are revenues split, and how is the MRV protocol consistently enforced across geographies? Registries support programmatic registration, but you must standardise PDD templates, a central MRV repository, and a single governance charter for subprojects. Do this well and you lower per-credit costs and increase buyer appetite.


12. Practical PDD/MRV wording (audit-ready samples)

Use these clauses to speed PDD drafting and reduce back-and-forth with verifiers.

Monitoring objective (sample)

“The project quantifies sustained adoption of Project stoves and fuel-switch behaviour using a mixed-method monitoring system combining Stove Use Monitor (SUMs) data from a stratified, representative sample, fuel purchase/refill records where available, and annual socio-economic household surveys. All raw SUMs logs, survey instruments and enumerator training materials are retained in the project MRV repository and made available to the VVB upon request.” Clean Cooking Alliance

Additionality rationale (sample)

“The project targets households that, despite receiving connection under national programs, demonstrate low refill frequency and high stove-stacking. By providing targeted refill affordability support, user training, and maintenance incentives that exceed government program provisions, the project increases sustained use of clean fuel — thereby producing measurable additional emission reductions.” (Cite PMUY coverage and refill trends.)

Use conservative factors and avoid optimistic extrapolations.


13. A compact Anaxee playbook — what to do next (practical & unapologetic)

If Anaxee wants to scale credible clean-cooking credits in India, focus on:

  1. Design for measurement: pick technologies and distribution models that support metering or reliable SUMs deployment. Meter when you can; use SUMs when you can’t.

  2. Solve refill economics: in PMUY contexts, the marginal gain is sustained refills. Design top-up/subsidy interventions tied to verified refill behaviour.

  3. Build a central MRV hub: centralise data ingestion, cleaning, and audit folders. Train enumerators thoroughly and maintain version-controlled raw data.

  4. Aggregate from day one: standardise PDD templates and MRV protocols so small cohorts can be pooled under a single program.

  5. Conservatism & transparency: err conservative in ex-ante estimates; publish methodological choices and make samples available to buyers.

Be brutal about quality control: it’s cheaper to do MRV properly than to defend inflated claims later.


14. Hypothetical pilot: a design you can replicate

Target cohort: 10,000 rural households across two districts with demonstrable low refill frequency.
Intervention: partial LPG refill subsidy for 12 months + intensive behaviour-change + SUMs on a 10% representative sample.
MRV plan: baseline SUMs + survey; SUMs redeployment at 6 and 12 months; monthly refill logs for the cohort from retail partners where feasible; independent verification at 12 and 24 months.
Commercial packaging: conservative ex-ante ERs, buyer quarterly reporting with access to anonymised SUMs sample, and a 5–10% buffer for programme risk.

This pilot balances costs and credibility and produces a buyer-friendly evidence package.


15. Buyer due diligence checklist (for corporates)

Before you sign a purchase agreement, demand:

-Raw SUMs files for representative monitoring windows and a sample of cleaned extracts.

-Clear additionality evidence against national/local programmes (e.g., PMUY stats and how the project adds to those).

-Benefit-sharing and grievance redress mechanism documentation.

-Sample verification report from a VVB and contactable references.

-Evidence of supply-chain sustainability if biomass/pellets are used.

If a developer can’t provide these, discount the credits or walk away.


16. Closing reality check (no marketing spin)

Clean cooking is high-impact and can produce high-integrity ERs — but only if project developers stop treating carbon income as a rebate on distribution costs. The market has shifted. Standards and buyers now reward measurement (metering and SUMs), conservatism, and transparency. Anaxee’s operational strengths — local field teams, dMRV capacity, and experience in community engagement — are exactly the assets needed to execute credible programs. But execution must prioritise MRV funding and discipline. Skimp on monitoring and you’ll pay later in auditor delays, discounts, or stripped credits.
Connect with us at sales@anaxee.com

IETA VCM Guidelines 2.0 Explained: High-Integrity Carbon Credits & Anaxee’s Role

IETA VCM Guidelines 2.0 Explained: High-Integrity Carbon Credits & Anaxee’s Role

Introduction

The world is racing against time. The Intergovernmental Panel on Climate Change (IPCC) has made it painfully clear: global emissions must peak immediately and almost halve by 2030 to keep the 1.5°C target alive. Yet, corporate climate action is not keeping pace. Many companies either lack credible net zero targets or are falling behind on their commitments.

In this landscape, the Voluntary Carbon Market (VCM) plays a critical role. It offers companies a flexible, cost-effective pathway to complement internal decarbonisation with credible climate action. But trust in the VCM has been shaken by concerns over quality, transparency, and inconsistent standards. That’s why the International Emissions Trading Association (IETA) released the updated VCM Guidelines 2.0 in September 2025.

These guidelines set out a roadmap for high-integrity use of verified carbon credits (VCCs)—ensuring that offsets go beyond being just “carbon accounting tools” and instead become powerful levers for real climate impact.

For India, where carbon markets are still evolving and the government is piloting mechanisms like the Carbon Credit Trading Scheme (CCTS), aligning with international integrity standards is crucial. And this is where Anaxee Digital Runners Pvt. Ltd. steps in—as India’s climate execution engine, ensuring that global principles of integrity translate into real action on the ground.


Section 1: The State of the Voluntary Carbon Market

The VCM has grown into a multi-billion-dollar ecosystem. By allowing companies to buy Verified Carbon Credits (VCCs) from projects that reduce or remove emissions, it creates a financial channel to scale climate solutions, from afforestation to renewable energy.

But after peaking in 2021, voluntary retirements of carbon credits stagnated. Several reasons explain this slowdown:

-Reputational risks: Companies fear being accused of “greenwashing” if their credit purchases are seen as low-quality or tokenistic.

-Quality concerns: Not all carbon credits are equal. Some projects failed to deliver the promised climate benefits.

-Regulatory uncertainty: Different frameworks—VCMI, ICVCM, SBTi, ISO—provide overlapping but inconsistent guidance.

-Market complexity: With multiple registries, methodologies, and rules, corporates face confusion about what counts as “credible” action.

Yet, demand for high-quality carbon credits remains essential. According to IETA’s modelling, international carbon markets could cut global mitigation costs by up to 32%. And for countries like India, carbon markets can unlock vital climate finance to support communities, smallholder farmers, and nature-based solutions.

The IETA Guidelines 2.0 are designed to address these bottlenecks and restore trust.


Section 2: What Are the IETA VCM Guidelines 2.0?

IETA first launched its high-integrity guidelines in April 2024. Version 2.0, released in September 2025, builds on feedback from corporates, governments, and independent initiatives. The goal: create clear, pragmatic rules for companies that want to integrate carbon credits into their net zero strategies without losing credibility.

The guidelines outline seven pillars of integrity:

  1. Demonstrate support for the Paris Agreement goals – Companies must set science-based targets aligned with 1.5°C.

  2. Quantify and disclose Scope 1, 2, and 3 emissions – No shortcuts. Transparency is non-negotiable.

  3. Establish a net zero pathway and near-term targets – Companies must show measurable interim steps, not vague 2050 promises.

  4. Use VCCs in line with the mitigation hierarchy – Prioritise internal reductions first, use credits only for what cannot be abated.

  5. Ensure only high-quality credits are used – Credits must be additional, verifiable, permanent, and issued by credible standards.

  6. Transparent accounting and disclosure – Report gross vs. net emissions, credit vintages, registries, and methodologies used.

  7. Make robust and credible claims – Companies must avoid misleading labels like “carbon neutral” unless they meet strict conditions.

This framework sends a strong message: carbon credits are not excuses; they are enablers of ambitious decarbonisation.


Section 3: Why High-Integrity Use Matters

The credibility of the VCM hinges on integrity. When companies misuse credits—buying cheap offsets while continuing business-as-usual emissions—they undermine trust in the entire system.

This has real consequences:

-NGOs and watchdogs accuse corporates of greenwashing.

-Regulators consider tightening rules, adding compliance risks.

-Investors lose confidence in ESG disclosures.

-Genuine climate finance flows to vulnerable regions slow down.

High-integrity use ensures that:

-Every credit corresponds to a real, measurable emission reduction or removal.

-Companies are transparent about how credits fit into their climate strategy.

-VCM finance actually accelerates global net zero, instead of being a distraction.

IETA’s Guidelines are therefore as much about protecting corporate reputations as they are about protecting the climate.


Section 4: Corporate Use Cases of VCCs

One of the strengths of the IETA Guidelines 2.0 is their recognition of multiple legitimate use cases for carbon credits. Instead of seeing credits only as end-of-pipe offsets, the guidelines outline broader roles:

  1. Meeting Interim Targets – Companies can use credits to stay accountable in the 2020s and 2030s, while technology solutions scale up.

  2. Staying on Track – If a company falls behind its science-based trajectory, credits can bridge the gap temporarily.

  3. Insetting – Credits generated within a company’s supply chain (e.g., regenerative agriculture projects) to cut Scope 3 emissions.

  4. Counterbalancing Residual Emissions – At net zero, credits are vital to address unavoidable emissions.

  5. Addressing Historical Emissions – Ambitious companies can go further by compensating for their legacy impact.

  6. Going Beyond Net Zero – Contributing extra credits to accelerate global decarbonisation.

This flexible approach makes credits not just compliance tools, but strategic assets for companies that want to demonstrate climate leadership.


Section 5: VCC Quality and Risk Management

Not all credits are created equal. IETA emphasizes strict quality filters:

-Additionality – Projects must deliver emission reductions that wouldn’t have happened otherwise.

-Permanence – Risks of reversal (e.g., forest fires) must be managed via buffers or insurance.

-Verification – Independent auditors must validate methodologies and outcomes.

-Transparency – Project details, vintages, and retirement records must be public.

Emerging tools to support quality include:

-ICVCM’s Core Carbon Principles (CCPs)

-Carbon rating agencies (CRAs) like Sylvera and BeZero

-Carbon insurance products to mitigate project failure risks

The message is clear: a credit with integrity is an investment in climate stability; a poor-quality credit is a liability.


Section 6: Policy & Market Convergence

Carbon markets are no longer siloed. Voluntary and compliance frameworks are converging:

-Under Article 6 of the Paris Agreement, countries can use VCCs to meet their Nationally Determined Contributions (NDCs).

-Domestic markets (California ETS, Singapore carbon tax, China ETS) already allow limited use of credits.

-India’s Carbon Credit Trading Scheme (CCTS) is preparing to integrate credits into regulated trading.

For corporates, this convergence means two things:

  1. Credits used voluntarily today may soon count under compliance.

  2. Regulatory scrutiny on claims will only increase.

Aligning with IETA’s guidelines now helps companies future-proof their climate strategies.


Section 7: What This Means for India

India is at the center of the climate-finance equation. As a fast-growing economy and one of the world’s largest emitters, India must decarbonise without stalling development.

The VCM offers three major opportunities for India:

-Channel private finance into nature-based solutions (NbS) like agroforestry, mangroves, and soil carbon.

-Support smallholder farmers and rural communities by making them stakeholders in carbon markets.

-Position Indian corporates to meet global supply chain expectations around net zero and Scope 3 accounting.

But to tap this opportunity, integrity is non-negotiable. Projects must avoid leakage, ensure permanence, and deliver verifiable co-benefits. That’s where local execution capacity becomes critical.


Section 8: Anaxee’s Value in This Context

For international buyers and Indian corporates, the biggest question is: who will ensure integrity on the ground?

This is where Anaxee Digital Runners Pvt. Ltd. adds unique value:

  1. Execution Engine at Scale

    -With 125+ professionals and a network of 40,000+ Digital Runners, Anaxee can implement and monitor projects across India’s villages and farmlands.
    -This local capacity solves the biggest bottleneck: execution.

  2. dMRV & Transparency Tools

    -Anaxee integrates satellite monitoring, AI-driven analytics, and mobile-based data collection.
    -This ensures census-level verification, making every credit auditable, transparent, and trustworthy.

  3. Community Engagement

    -Projects are designed with farmer and community participation, ensuring permanence and social co-benefits.
    -This aligns with IETA’s emphasis on stakeholder consultation and just transition.

  4. Risk Reduction for Corporates

    -By ensuring credits meet international quality standards, Anaxee reduces reputational and compliance risks for buyers.

  5. Alignment with IETA Guidelines

    -Scope 1–3 emissions tracking for clients → supports disclosure.
    -High-quality, verified credits → ensures integrity.
    -Transparent registries and reporting → supports guideline 6.
    -Enabling corporates to make credible claims → prevents greenwashing.

In short: Anaxee translates IETA’s global guidelines into Indian ground reality.


Conclusion

The IETA VCM Guidelines 2.0 are more than a policy paper. They are a blueprint for credibility in carbon markets. By following them, companies can avoid greenwashing, build trust, and channel finance into solutions that truly matter.

But guidelines alone cannot deliver impact. Execution on the ground—across diverse geographies, communities, and ecosystems—remains the missing link.

That’s where Anaxee steps in. With its blend of last-mile execution, community partnerships, and technology-driven monitoring, Anaxee ensures that every carbon credit is real, additional, and trustworthy.

For corporates navigating India’s climate market, this means confidence:

-Confidence that credits are high-quality.

-Confidence that investments are future-proof.

-Confidence that climate claims will stand scrutiny.

The voluntary carbon market is at a crossroads. It can either regain credibility and scale—or stagnate under distrust. With IETA’s guidelines and Anaxee’s execution capacity, there’s a clear pathway forward: climate action with integrity.


 About Anaxee:

 Anaxee drives/develops large-scale, country-wide Climate and Carbon Credit projects across India. We specialize in Nature-Based Solutions (NbS) and community-driven initiatives, providing the technology and on-ground network needed to execute, monitor, and ensure transparency in projects like agroforestry, regenerative agriculture, improved cookstoves, solar devices, water filters and more. Our systems are designed to maintain integrity and verifiable impact in carbon methodologies.

Beyond climate, Anaxee is India’s Reach Engine- building the nation’s largest last-mile outreach network of 100,000 Digital Runners (shared, tech-enabled field force). We help corporates, agri-focused companies, and social organizations scale to rural and semi-urban India by executing projects in 26 states, 540+ districts, and 11,000+ pin codes, ensuring both scale and 100% transparency in last-mile operations. Connect with Anaxee atsales@anaxee.com 

Scope 1, 2, and 3 Emissions Explained: A Complete Guide for Businesses

Introduction: Why Are Scope 1, 2, and 3 Important?

Every business today faces the same question: How sustainable are your operations?

Governments, investors, customers, and even employees want answers. And when companies reply, they don’t just talk about their own fuel use or electricity bills. They speak in the language of Scope 1, 2, and 3 emissions.

Infographic showing Scope 1, Scope 2, and Scope 3 emissions categories with icons of factory, electricity grid, supplier truck, and waste bin.

These three categories, defined by the Greenhouse Gas (GHG) Protocol, have become the global framework for measuring and reporting emissions. Without them, climate commitments like Net Zero by 2050 would remain vague promises.

But while Scope 1 and Scope 2 are relatively easy to understand, Scope 3 is the real challenge. It extends far beyond a company’s direct operations, covering suppliers, customers, and waste streams.

In this guide, we’ll break down each scope, provide examples from different industries, explain why Scope 3 dominates discussions, and finally show how Anaxee Digital Runners brings technology and community power together to make Scope accounting and reduction practical on the ground.


The GHG Protocol and Its Scopes

The GHG Protocol Corporate Standard, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), is the most widely used carbon accounting framework.

It divides corporate emissions into three “scopes”:

-Scope 1: Direct emissions from owned or controlled sources.

-Scope 2: Indirect emissions from purchased energy.

-Scope 3: All other indirect emissions in the value chain.

This classification helps businesses:

  1. Avoid double counting.

  2. Compare performance across industries.

  3. Identify where emissions reductions are most impactful.


Infographic with examples of Scope 1, 2, and 3 emissions: manufacturing facilities, purchased electricity, business travel and waste.

Scope 1 Emissions — Direct and Visible

Scope 1 is the most straightforward category. It includes emissions from sources that a company owns or controls.

Examples:

-Burning fuel in company-owned vehicles, generators, or boilers.

-On-site industrial processes, such as chemical production or steelmaking.

-Fugitive emissions from refrigeration, air conditioning, or gas leaks.

Sector snapshots:

-Manufacturing: Gas-fired furnaces, diesel forklifts.

-Logistics: Truck fleets running on petrol or diesel.

-Agriculture: Methane from company-owned livestock herds.

Why it matters:
Scope 1 represents a company’s most visible footprint. These are the emissions regulators and communities often point to when discussing local air quality or compliance with national targets.

Reduction strategies:

-Transition company fleets to EVs or CNG.

-Replace oil-fired boilers with solar thermal systems.

-Improve process efficiency using automation and data monitoring.


Scope 2 Emissions — The Outsourced Chimney

Scope 2 covers emissions from purchased energy — electricity, heat, or steam.

Examples:

-An IT company powering data centers with coal-heavy grid electricity.

-A textile factory buying steam from a district heating plant.

-Office spaces running on air conditioning powered by fossil-fuel grids.

These emissions don’t occur inside the company fence line. They occur at the power plant that generates the electricity. But since the company consumes that energy, it bears responsibility.

Sector snapshots:

-Tech & IT: Data centers are Scope 2 heavy.

-Retail chains: Electricity for lighting, cooling, and refrigeration.

-Hospitals: High power consumption for equipment and HVAC.

Reduction strategies:

-Purchase renewable electricity via PPAs (Power Purchase Agreements).

-Install rooftop solar or captive renewable plants.

-Improve building energy efficiency (LEDs, insulation, HVAC upgrades).

👉 Scope 2 is often the low-hanging fruit for businesses aiming to quickly cut emissions.


Scope 3 Emissions — The Giant in the Room

Scope 3 is the most complex — and usually the largest — part of a company’s footprint. It covers all other indirect emissions in the value chain.

Examples:

-Extraction and processing of purchased raw materials.

-Business travel and employee commuting.

-Transportation and logistics of goods.

-Use of sold products (fuel in cars, electricity in appliances).

-End-of-life disposal (waste, recycling, landfilling).

Why Scope 3 matters:

-For consumer goods companies, Scope 3 can make up 90–95% of total emissions.

-For banks, investments in carbon-intensive industries fall under Scope 3.

-For oil companies, customer use of fuels is Scope 3 and dwarfs Scope 1 and 2.

Sector snapshots:

-Automotive: Customer driving (fuel combustion) is the largest Scope 3.

-Food industry: Farming inputs and supply chains dominate Scope 3.

-Fashion: Raw material production (cotton, polyester), logistics, and waste.

Challenges:

-Data gaps: Companies rely on suppliers for accurate information.

-Complexity: Thousands of suppliers, multiple geographies.

-Double counting risks: One company’s Scope 3 may be another’s Scope 1.

Reduction strategies:

-Collaborate with suppliers on low-carbon materials.

-Design products for circularity (reuse, recycling).

-Offer low-carbon alternatives (EVs, energy-efficient appliances).

-Influence customer behavior through product innovation.

👉 Scope 3 isn’t optional anymore. Regulators and investors increasingly expect full disclosure.


Step-by-step infographic titled "Steps to Measure Greenhouse Gas Emissions," listing organizational boundaries, data collection, total emissions calculation, and reduction targets.
Why Splitting into Scopes Makes Sense

The three-scope framework exists for a reason:

  1. Clarity: Companies know what they are directly responsible for.

  2. Comparability: Industries can benchmark performance.

  3. Accountability: Prevents multiple companies from claiming the same reductions.

For instance, a coal power plant counts emissions as Scope 1. A manufacturing company using that power counts them as Scope 2. The suppliers and customers downstream consider relevant portions under Scope 3.

This layered approach creates a global map of carbon responsibility.


Case Studies Across Industries

-IBM: Reduced Scope 2 emissions in Texas by switching to wind power, cutting 4,100 tonnes of CO₂ annually.

-DHL Sweden: Found 98% of emissions came from outsourced logistics (Scope 3).

-Tata Steel: Tracks Scope 1 and 2 using digital systems, aligning with global benchmarks.

-Ford Motor Company: Expanded inventory to include Scope 3, enabling it to join emissions trading programs. These examples show how companies worldwide are aligning business strategy with the GHG Protocol.


Common Pitfalls in Scope Reporting

-Over-focusing on Scope 1: Easy to measure, but often small compared to Scope 3.

-Ignoring suppliers: Without supplier data, Scope 3 becomes guesswork.

-Greenwashing: Selective disclosure without full transparency.

-Static reporting: Failing to update inventories as supply chains evolve.

The lesson? All three scopes matter — and need continuous updating.


The Future of Scope Accounting

The world is moving toward mandatory carbon disclosure.

-The EU’s CSRD (Corporate Sustainability Reporting Directive) requires detailed scope reporting.

-The US SEC is considering Scope 3 disclosure for listed companies.

-India’s BRSR (Business Responsibility and Sustainability Reporting) framework is pushing corporates in this direction.

Science-Based Targets initiative (SBTi) also mandates that companies include Scope 3 if it makes up more than 40% of their total footprint.

The future is clear: Scope 3 disclosure will be non-negotiable.


How Anaxee Adds Value

Here’s where Anaxee Digital Runners steps in. Managing Scopes isn’t just about reporting — it’s about execution on the ground.

Anaxee brings a unique combination of Tech + Community:

-Digital Runners Network: 40,000+ trained local people across India collecting last-mile data, ensuring accurate Scope 1–3 inventories.

-dMRV Tools: Digital monitoring, reporting, and verification systems that replace outdated spreadsheets.

-Community Engagement: Scope 3 depends heavily on supplier and consumer behavior. Anaxee’s grassroots presence helps companies drive awareness and behavior change.

-Implementation Power: From agroforestry to renewable adoption, Anaxee doesn’t just advise — it executes projects across thousands of villages.

-Transparency Dashboards: Real-time visibility for corporates to track reductions against Scope targets.

For businesses in India and global investors looking at Nature-based Solutions (NbS), Anaxee provides the execution muscle and tech backbone to actually deliver reductions, not just commitments.


Conclusion: Turning Scopes into Action

Scopes 1, 2, and 3 give companies a complete picture of their carbon footprint.

-Scope 1 is about direct control.

-Scope 2 is about the energy you rely on.

-Scope 3 is about the full value chain.

The hard truth? Scope 3 is the elephant in the room — but also the biggest opportunity. Companies that master it will not only cut emissions but also build resilience, efficiency, and stronger brands.

And with partners like Anaxee, businesses don’t have to navigate this alone. Anaxee’s Tech for Climate approach brings credibility, scale, and ground-level execution to help companies not just measure emissions — but reduce them, for real.

Because in the end, what matters isn’t just counting carbon. It’s cutting it.


Afforestation and Reforestation in India: Scaling High-Quality Carbon Removal with Anaxee

Introduction: Trees as a Climate Solution

Trees are one of the most iconic symbols of climate action. They pull carbon from the atmosphere, provide oxygen, restore biodiversity, and improve livelihoods. Afforestation (planting trees where none existed) and reforestation (restoring degraded forests) together are known as ARR projects.

Globally, ARR is one of the most widely adopted pathways in carbon markets. In India, with its vast degraded lands and dependence on agriculture and forests, ARR has immense potential.

But ARR also faces heavy scrutiny. Many projects promise more than they deliver: trees that never survive, monoculture plantations that harm biodiversity, or communities left out of benefits.

The 2025 Criteria for High-Quality CDR stress that ARR projects must be measured, durable, and just. That’s where Anaxee steps in—with last-mile reach, dMRV tools, and community-first models.


What Is ARR (Afforestation and Reforestation)?

ARR projects include:

-Afforestation: Establishing forests on land that has not been forested for decades.

-Reforestation: Restoring forests on degraded or recently deforested lands.

-Agroforestry & Bund Plantations: Integrating trees into farms, hedges, and bunds.

Carbon is stored in:

-Above-ground biomass (trees, shrubs, understory).

-Below-ground biomass (roots).

-Soils (improved organic matter).

Done right, ARR not only removes carbon but delivers ecosystem resilience, biodiversity, and livelihoods.


Why ARR Matters for India

1. Huge Degraded Land Base

India has over 30 million hectares of degraded land—an untapped opportunity for carbon removal and ecosystem restoration.

2. Rural Livelihoods

Tree planting provides fuel, fodder, fruits, and timber—direct benefits for farmers and communities. With carbon finance, ARR becomes a long-term income stream.

3. Climate Targets

India’s NDCs under the Paris Agreement call for creating an additional 2.5–3 billion tonnes of CO₂ equivalent carbon sink by 2030 through forests and trees. ARR is central to this goal.


What Makes High-Quality ARR Projects?

The 2025 Criteria define key principles:

1. Social and Environmental Justice

-Avoid land grabs.

-Secure community consent and benefits.

-Respect Indigenous rights and cultural landscapes.

2. Biodiversity and Ecosystem Integrity

-No monoculture plantations in natural ecosystems.

-Native species, mixed forests, and landscape restoration.

3. Additionality and Baselines

-Projects must prove trees would not have grown without carbon finance.

-Conservative baselines for carbon stock.

4. MRV and Transparency

-Geotagged planting data.

-Satellite and ground verification.

-Independent third-party audits.

5. Durability

-Fire, drought, pests—ARR faces reversal risks. Projects must plan long-term maintenance and insurance buffers.

6. Leakage Control

-Ensure planting here doesn’t drive deforestation elsewhere.


The Challenges of ARR
Infographic titled “Challenges in ARR” with icons representing project risks, community engagement, financial sustainability, and logistics & monitoring, shown alongside a field worker wearing Anaxee branding in a forest background.

-Low Survival Rates: Many plantation drives see <30% survival after a few years.

-Monocultures: Quick-growing species like eucalyptus harm ecosystems.

-Short-Termism: Projects collapse after initial funding.

-Community Exclusion: Farmers and locals often see no benefits.

This is why ARR projects face skepticism. To be credible, they must deliver quality, not just quantity.


Anaxee’s Approach to High-Quality ARR

Infographic titled “Anaxee’s ARR Model” with four icons representing Tech, Community, MRV, and Durability, displayed horizontally against a forest background.

Anaxee ensures ARR projects meet global standards while delivering local value.

1. Last-Mile Reach

-40,000+ Digital Runners mobilize communities across 26 states.

-Farmers are trained and incentivized for long-term tree care.

2. dMRV Tools

-Geotagged planting records.

-Satellite + AI analysis for growth monitoring.

-Transparent dashboards for buyers and auditors.

3. Community-Centric Models

-Farmers own trees and share carbon revenue.

-Livelihood benefits: fruit, timber, fodder.

-Inclusive participation—women, youth, marginalized groups.

4. Survival & Durability

-Focus on native, climate-resilient species.

-Long-term contracts ensure trees are protected.

-Maintenance supported by community agreements.

5. Transparency & Global Compliance

-Projects aligned with Verra (ARR methodologies), Gold Standard, and 2025 Criteria.

-Buyers receive auditable, traceable credits.


Case Example: Bund Plantations in Madhya Pradesh

Anaxee has pioneered bund plantations—trees planted along farm bunds:

-Carbon Removal: Sequesters carbon in biomass + soils.

-Farmer Benefits: Provides fodder, shade, and reduced erosion.

-Traceability: Each tree is geotagged and tracked in dMRV.

-Durability: Farmers protect trees because they share in revenue.

This model combines climate action, community income, and transparent reporting—a blueprint for scaling ARR in India.


India’s Global ARR Opportunity

Global buyers are looking for high-quality ARR credits:

-Microsoft, Shell, and major corporates invest in forest carbon.

-ARR credits trade actively in voluntary markets.

-Compliance markets (like India’s CCTS) may also integrate ARR soon.

If ARR in India meets quality benchmarks, it can:

-Unlock billions in carbon finance.

-Restore degraded landscapes.

-Create millions of rural jobs.


Scaling ARR: Quality over Hype

The world has seen too many “plant a billion trees” campaigns with little impact. The future is not about numbers—it’s about verified, durable, community-led ARR projects.

Scaling ARR requires:

-Quality-first design.

-Digital MRV for transparency.

-Farmer and community partnerships.

-Long-term management and durability planning.

Anaxee is building exactly this system in India.


Conclusion: Planting Trust Alongside Trees

ARR has the potential to be India’s most powerful carbon removal tool. But only if done right. The 2025 Criteria for High-Quality CDR provide the guardrails.

Anaxee ensures ARR projects are transparent, durable, and community-driven. By planting trust alongside trees, we create climate solutions that endure.


👉 Call to Action
Partner with Anaxee to build high-quality afforestation and reforestation projects in India. Together, we can restore ecosystems, empower communities, and deliver credible carbon removals. Connect with us at sales@anaxee.com

MRV in Carbon Projects: Building Trust through Digital Measurement, Reporting, and Verification

Introduction: Why MRV Is the Backbone of Carbon Markets

Every carbon credit is supposed to represent one tonne of CO₂ removed or avoided. But how do we know that tonne is real? How do we ensure it isn’t double-counted, exaggerated, or reversed?

The answer is MRV—Measurement, Reporting, and Verification. Without MRV, carbon markets collapse into greenwashing and mistrust. With MRV, they become a credible climate solution.

The 2025 Criteria for High-Quality Carbon Dioxide Removal makes MRV one of its central pillars. High-quality projects must measure transparently, report consistently, and verify independently.

In India, where projects span millions of smallholders and diverse landscapes, this is even more critical. Traditional MRV methods—paper-based surveys, occasional audits—are too slow and prone to error. What’s needed is digital MRV (dMRV): scalable, transparent, and cost-effective.

That’s where Anaxee comes in.


What Is MRV in Carbon Projects?

MRV stands for:

  1. Measurement – collecting accurate data on carbon removal or emissions reduction.

  2. Reporting – documenting and sharing the data in a standardized format.

  3. Verification – independent auditing to ensure credibility.

For example:

-In a soil carbon project, measurement involves soil sampling and remote sensing.

-Reporting involves compiling data into methodologies like Verra’s VM0047.

-Verification means third-party auditors checking data integrity.

Without these steps, credits are just promises on paper.


Why MRV Is So Challenging in India

India’s carbon opportunity is massive—but so are the MRV challenges:

-Scale: Millions of farmers across thousands of villages.

-Diversity: Crops, soils, and practices vary by region.

-Data Gaps: Smallholders often lack records or connectivity.

-Cost: Traditional MRV can eat up 30–40% of project revenues.

-Timeliness: Manual audits take months or years, delaying credits.

These challenges risk excluding smallholders or creating low-quality credits.


Digital MRV (dMRV): The Next Generation
Infographic comparing Traditional MRV and Digital MRV, with icons and a field worker illustration. Traditional MRV is shown as time-consuming, paper-based, manual, and high-cost, while Digital MRV highlights real-time data, remote sensing, and automation.

Digital MRV uses technology to make monitoring real-time, scalable, and verifiable. Tools include:

-Remote Sensing: Satellite and drone imagery for land-use tracking.

-IoT Sensors: Soil moisture, carbon flux, and weather data.

-Mobile Apps: Farmer surveys, geotagged photos, and activity logs.

-AI & Machine Learning: Pattern recognition for crop and forest growth.

-Blockchain: Immutable reporting and transparent registries.

Together, these make MRV faster, cheaper, and more credible.


Why MRV Is a Pillar of High-Quality Carbon Removal

The 2025 Criteria for High-Quality CDR stress MRV for three reasons:

  1. Integrity – ensuring every claimed tonne is real.

  2. Transparency – buyers, auditors, and communities see the same data.

  3. Durability – tracking projects over decades to prevent reversals.

MRV isn’t just a technical box to tick—it’s what separates a market built on trust from one riddled with greenwashing.


Anaxee’s dMRV: Tech-Enabled Trust at Scale
Infographic listing benefits of digital MRV such as lower costs, speed, scalability, transparency, and community inclusion, alongside challenges like data gaps, lack of standardization, access issues, trust in technology, and high setup costs.

Anaxee has built a digital MRV ecosystem designed for India’s unique challenges:

1. Last-Mile Data Collection

-40,000+ Digital Runners gather on-ground data—tree survival, soil practices, farmer feedback.

-Mobile apps ensure geotagging, timestamping, and instant uploads.

2. Remote Sensing + AI

-Satellite imagery tracks land-use change and vegetation growth.

-AI models estimate biomass and soil carbon across landscapes.

3. Transparent Dashboards

-Real-time dashboards show project progress for farmers, corporates, and auditors.

-Buyers see live evidence, not just static reports.

4. Independent Verification

-Data is structured to meet global standards (Verra, Gold Standard, ISO).

-Third-party verifiers access transparent datasets for audits.

5. Cost Efficiency

-dMRV reduces MRV costs from 30–40% down to 10–15%.

-This means more carbon finance flows directly to farmers.


The Risks of Weak MRV

Without strong MRV, projects risk:

-Over-crediting: claiming more tonnes than removed.

-Double-counting: two entities claiming the same tonne.

-Leakage blindness: ignoring displacement effects.

-Reversal blind spots: missing when carbon is re-released.

Weak MRV undermines market trust. Buyers walk away, farmers lose out, and the climate suffers.


India’s Opportunity: Becoming a Hub for Transparent Credits

If India can solve MRV at scale, it can become the world’s hub for credible NbS credits. Global buyers increasingly demand transparency: Microsoft, Stripe, and Frontier all require rigorous MRV.

With dMRV, India can:

-Unlock farmer participation.

-Build buyer confidence.

-Reduce project costs.

-Position itself as a global leader in carbon credit quality.


Case Example: Bund Plantations + dMRV

In Anaxee’s bund plantation projects in Madhya Pradesh:

-Digital Runners record tree planting with geotagged photos.

-Satellites confirm survival and growth.

-AI models estimate biomass accumulation.

-Dashboards show transparent progress to buyers.

The result: credits that are traceable, auditable, and trusted.


Future of MRV: Beyond Compliance

MRV will evolve from being a compliance burden to a value creator:

-Farmers can use data for better crop management.

-Corporates gain brand trust through transparent offsets.

-Communities build resilience through shared monitoring.

Anaxee’s Climate Command Centre is already pioneering this future—linking MRV with community development, financial flows, and SDG impacts.


Conclusion: MRV as the Engine of Trust

Carbon markets live or die by trust. MRV is the engine of that trust. Without it, credits are empty promises. With it, credits become real climate action.

The 2025 Criteria for High-Quality CDR made this clear. For India, the challenge is scale and credibility. Anaxee’s dMRV shows how to bridge that gap—combining last-mile reach, digital tools, and transparent systems.

The future of carbon removal will be digital, transparent, and community-driven. Anaxee is already building it.


Partner with Anaxee to deploy scalable, transparent dMRV solutions in India’s carbon projects. Let’s build trust, credibility, and impact together.

About Anaxee:

 Anaxee drives/develops large-scale, country-wide Climate and Carbon Credit projects across India. We specialize in Nature-Based Solutions (NbS) and community-driven initiatives, providing the technology and on-ground network needed to execute, monitor, and ensure transparency in projects like agroforestry, regenerative agriculture, improved cookstoves, solar devices, water filters and more. Our systems are designed to maintain integrity and verifiable impact in carbon methodologies.

Beyond climate, Anaxee is India’s Reach Engine- building the nation’s largest last-mile outreach network of 100,000 Digital Runners (shared, tech-enabled field force). We help corporates, agri-focused companies, and social organizations scale to rural and semi-urban India by executing projects in 26 states, 540+ districts, and 11,000+ pin codes, ensuring both scale and 100% transparency in last-mile operations. Connect with Anaxee at sales@anaxee.com 

An Anaxee field worker photographs a ground-mounted solar panel array in a lush farm, documenting a solar-agriculture pilot in rural India.

Soil Carbon Projects in India: Pathways for High-Quality Carbon Removal with Anaxee

Introduction: The Carbon Beneath Our Feet

When we talk about climate solutions, the focus often goes to trees, solar panels, or electric vehicles. But there’s a silent climate ally right beneath us: soil.

Globally, soils store more carbon than the atmosphere and vegetation combined. Healthy soils are not just the backbone of agriculture; they are also a massive carbon sink. By adopting the right practices, farmers can draw down atmospheric carbon into soils—locking it away while boosting fertility, water retention, and resilience.

The 2025 Criteria for High-Quality CDR recognizes soil carbon as a key pathway, but with important caveats: measurement, durability, and community justice are critical.

For India—a country with over 150 million smallholder farmers—soil carbon is not just about climate. It’s about livelihoods, food security, and creating a new income stream through carbon finance.


What Is Soil Carbon Removal?
Infographic titled “What is Soil Carbon?” listing regenerative agriculture, agroforestry, organic soil amendments, and pasture management, with Anaxee branding.

Soil carbon removal involves changing land management practices so that more carbon is stored in soils. This can be achieved through:

-Regenerative agriculture – practices like cover cropping, crop rotation, reduced tillage.

-Agroforestry – integrating trees into farmland.

-Organic soil amendments – compost, biochar, or enhanced rock weathering.

-Pasture management – rotational grazing that enhances soil cover.

These changes help soils absorb and retain more organic carbon, turning farms into climate-positive landscapes.


Why Soil Carbon Matters for India

1. Agriculture Is Both Vulnerable and Powerful

Agriculture contributes to India’s emissions (methane, nitrous oxide), but it is also extremely vulnerable to climate change. Soil carbon projects can reverse degradation, improve yields, and build resilience.

2. Rural Livelihoods

Most Indian farmers operate on marginal lands with tight incomes. Soil carbon credits offer new revenue streams through global carbon markets—helping farmers while fighting climate change.

3. Scale

With millions of hectares of farmland, even modest improvements in soil carbon storage can translate into gigatonne-scale removals.


What Makes a High-Quality Soil Carbon Project?

According to the 2025 Criteria, soil carbon projects must meet strict benchmarks:

1. Social and Environmental Justice

-Ensure farmers are not locked into harmful contracts.

-Guarantee fair benefit-sharing from carbon revenues.

-Protect communities from risks like rising input costs.

2. Environmental Integrity

-Avoid overuse of fertilizers or chemicals that harm ecosystems.

-Promote biodiversity, soil health, and water retention.

3. Additionality and Baselines

-Show that soil practices would not have been adopted without carbon finance.

-Set conservative baselines that account for natural regeneration.

4. MRV (Measurement, Reporting, Verification)

-Use peer-reviewed models and direct sampling.

-Monitor soil carbon changes with scientific rigor.

-Combine field sampling with remote sensing for accuracy.

5. Durability

-Soil carbon is reversible—droughts, floods, or practice abandonment can release carbon. Projects must plan for long-term adoption and risk mitigation.

6. Leakage

-Prevent displacement of practices—e.g., if reduced tillage here leads to over-tillage elsewhere.


The Challenges in Soil Carbon

Soil carbon is powerful but tricky:

-Measurement Uncertainty – detecting small year-to-year changes is scientifically challenging.

-Permanence Risks – carbon can be re-released if practices stop.

-Farmer Adoption – smallholders may hesitate without upfront support.

-Market Trust – buyers worry about inflated or unverifiable credits.

This is why soil carbon must be implemented with robust MRV, long-term planning, and community-first approaches.


Anaxee’s Approach to Soil Carbon in India

Anaxee is working to make soil carbon projects credible, scalable, and farmer-friendly. Here’s how:

1. Farmer-Centric Model
Infographic titled “Benefits for Farmers” showing icons for additional income, improved land productivity, knowledge and support, and climate resilience, with Anaxee branding.

-Farmers are partners, not just participants.

-We ensure clear contracts and transparent revenue sharing.

-We provide training in regenerative practices so benefits last beyond credits.

2. Digital MRV

-Our dMRV system combines:

  • Soil sampling protocols.

  • Remote sensing and satellite data.

  • Mobile-based farmer reporting (via Digital Runners).


  • Infographic explaining the dMRV Process—Digital Measurement, Reporting, and Verification—showing steps with icons for measurement, reporting, and verification, branded with Anaxee.

    -This ensures every tonne of soil carbon is traceable and verifiable.

3. Risk Mitigation

-Long-term engagement: multi-year contracts to prevent reversals.

-Blended portfolios: combining soil projects with agroforestry for durability.

-Early warning systems for risks like droughts.

4. Scale and Reach

-With 40,000+ Digital Runners across 26 states, we can engage farmers at scale.

-From Bund plantations in central India to regenerative farming in Punjab, Anaxee ensures projects are grounded in local context.


Soil Carbon and Global Carbon Markets

Buyers like Microsoft, Stripe, and Frontier are seeking high-quality removals—not just offsets. Soil carbon, if implemented well, can meet this demand.

However, buyers demand:

-Transparency in MRV.

-Durability guarantees.

-Clear community benefits.

By embedding the 2025 Criteria, Anaxee ensures Indian soil carbon projects meet global expectations while delivering local impact.


Case Example: Bund Plantations with Soil Benefits

In Madhya Pradesh, Anaxee has been implementing bund plantations (tree planting along farm bunds). These projects not only sequester carbon in trees but also:

-Reduce soil erosion.

-Improve water retention.

-Enhance soil organic matter.

Farmers see higher yields, lower risks, and additional carbon revenue—a model that aligns with soil carbon criteria while benefiting communities.


India’s Role in Scaling Soil Carbon

Globally, soil carbon is seen as one of the most scalable and affordable CDR solutions. For India:

-The sheer scale of agriculture makes it a climate opportunity.

-Programs like National Mission for Sustainable Agriculture can align with soil carbon.

-Carbon finance can create new rural economies.

The challenge is ensuring projects are high-quality, transparent, and durable. That’s the gap Anaxee fills.


Conclusion: Soil Carbon as India’s Climate and Rural Opportunity

Soil carbon is more than a climate tool—it’s a bridge between global carbon markets and local livelihoods. Done right, it improves soils, strengthens food systems, and rewards farmers while delivering credible removals.

But the “done right” is key. Without robust MRV, durability, and justice, soil carbon risks becoming another failed promise. With frameworks like the 2025 Criteria for High-Quality CDR, we now have the roadmap.

Anaxee is bringing that roadmap to life in India—combining tech, trust, and last-mile execution to ensure soil carbon projects are globally credible and locally transformative.

The future of climate action lies beneath our feet. It’s time we nurture it.


👉 Call to Action
Partner with Anaxee to unlock India’s soil carbon potential. Together, we can build credible, farmer-first, and globally trusted carbon projects.

About Anaxee:

 Anaxee drives/develops large-scale, country-wide Climate and Carbon Credit projects across India. We specialize in Nature-Based Solutions (NbS) and community-driven initiatives, providing the technology and on-ground network needed to execute, monitor, and ensure transparency in projects like agroforestry, regenerative agriculture, improved cookstoves, solar devices, water filters and more. Our systems are designed to maintain integrity and verifiable impact in carbon methodologies.

Beyond climate, Anaxee is India’s Reach Engine- building the nation’s largest last-mile outreach network of 100,000 Digital Runners (shared, tech-enabled field force). We help corporates, agri-focused companies, and social organizations scale to rural and semi-urban India by executing projects in 26 states, 540+ districts, and 11,000+ pin codes, ensuring both scale and 100% transparency in last-mile operations. Connect with Anaxee at sales@anaxee.com 

Anaxee: Redefining CSR and Carbon Projects with Tech-Enabled Transparency

Introduction: Why CSR Needs a New Model

India has emerged as a global pioneer in Corporate Social Responsibility (CSR) by making it mandatory under the Companies Act, 2013. Each year, thousands of crores flow into CSR initiatives, touching lives across education, health, livelihood, environment, and community development.

But when it comes to climate and carbon-linked CSR projects, the picture is less inspiring. While companies are increasingly allocating funds to environmental projects, questions persist:

-Are CSR funds truly creating measurable climate impact?

-Do corporates have real-time visibility into how projects are performing?

-Are NGOs empowered enough to implement long-term, carbon-accounted projects?

The reality is stark. Most CSR projects struggle with short-term focus, dependency on NGOs with limited resources, and lack of robust monitoring systems. As a result, transparency and credibility—the two pillars of impactful climate action—are often missing.

This is where Anaxee Digital Runners Pvt. Ltd. is changing the narrative. Positioned at the intersection of tech, community reach, and climate action, Anaxee offers a new model of CSR execution—one that makes climate projects transparent, scalable, and accountable.


The Shift: From Welfare CSR to Climate CSR

Infographic showing the CSR shift towards environmental sustainability with icons for people, trees, and renewable energy.

Traditionally, CSR in India has been focused on welfare projects—schools, hospitals, skill training, community services. These are important, but with the mounting urgency of the climate crisis, the corporate focus is shifting.

-Companies are expected to go beyond welfare and invest in sustainability.

-Climate-linked CSR is becoming part of ESG reporting and net-zero commitments.

-Regulators and stakeholders are pushing for measurable outcomes—not just good intentions.

Yet, many corporates face a gap. They want to invest CSR money into climate projects but lack credible, transparent partners who can bridge the gap between corporate boardrooms and rural landscapes where these projects take root.

Anaxee fills this gap.


Anaxee’s Unique Position in the CSR-Climate Space

Infographic showing Anaxee’s unique edge with icons for Pan-India Network, Tech Integration, Local Expertise, and Measurable Impact.

Anaxee is not just another implementation partner. It is a tech-enabled climate execution engine with unmatched last-mile reach across India.

Here’s what sets Anaxee apart:

  1. Nationwide Reach

    • With a network of 40,000+ Digital Runners, Anaxee has the capacity to execute projects in remote villages, tribal areas, and Tier-3 towns—where climate action truly matters.

    • This grassroots presence ensures authentic community engagement and trusted local participation.

  2. Tech-Driven Execution

    • Anaxee integrates digital monitoring, reporting, and verification (dMRV) tools into every CSR project.

    • Real-time dashboards give corporates visibility into where their funds are going and what impact is being created.

  3. Proven Track Record

    • From Clean cooking initiatives to agroforestry bund plantations under VM0047, Anaxee has delivered climate impact with social co-benefits.

    • Unlike NGOs struggling with scale, Anaxee can run multiple large-scale projects simultaneously.

  4. Bridging NGO Gaps

    • NGOs bring local trust and mobilization power, but lack tech, carbon expertise, and roadmaps.

    • Anaxee empowers NGOs with technology, training, and transparent processes—making them more effective partners.

In short, Anaxee is the missing link between corporate CSR funds, NGOs, and transparent carbon outcomes.


Bringing Transparency with Tech

Infographic of Anaxee’s tech-driven transparency with dashboard illustration and icons for dMRV, GIS, AI, and Satellite Monitoring.

The biggest challenge in CSR is trust. Companies often struggle to prove that:

-CSR funds were used as intended.

-The claimed impact is real and measurable.

-The benefits go beyond tokenism to long-term climate goals.

Anaxee addresses this through technology.

1. dMRV Tools for CSR and Carbon Projects

-Digital data collection through mobile apps.

-Geo-tagged photos, videos, and records.

-Automated carbon accounting integrated with project data.

2. Real-Time Dashboards for Corporates

-Corporates can log in and see project progress in real-time.

-Metrics like trees planted, survival rates, carbon sequestered, households impacted are visible at a click.

3. GIS and Satellite Integration

-Projects are cross-verified with remote sensing data.

-This eliminates false claims and ensures verifiable impact.

4. AI-Powered Monitoring

-Predictive analytics help corporates understand long-term project impact.

-Issues like sapling survival, resource gaps, or community participation can be addressed proactively.

This tech backbone makes Anaxee’s CSR projects auditable, transparent, and investor-grade.


Empowering NGOs Through Capacity Building

NGOs remain critical in India’s climate story. They are the ones who connect with communities, mobilize local participation, and create awareness. But they face limitations:

-Limited resources and manpower.

-Minimal exposure to carbon methodologies like VM0047.

-No 15–20-year roadmap planning.

-Lack of tech-enabled monitoring.

Anaxee doesn’t bypass NGOs—it empowers them.

-Training programs on climate project implementation.

-Digital tools to record and report their activities.

-Capacity building for long-term planning.

-Integration into carbon markets where NGOs couldn’t participate alone.

By partnering with Anaxee, NGOs are strengthened, not sidelined. They continue to bring local trust while Anaxee ensures transparency and scalability.


Case Examples: Anaxee in Action

1. Clean Cooking Initiatives (CSR + Climate + Health)

-Objective: Distribute clean cooking stoves in tribal communities.

-Impact:

  • Clean Cooking Initiative
    • 70% reduction in smoke-related health issues.

    • 50% less firewood consumption, reducing deforestation.

    • Community awareness on health + climate benefits.

This project showcases how Anaxee combines CSR with measurable carbon benefits.

2. Bund Agroforestry under VM0047
Drone based Tree Counting Agroforestry in India

-Integrated into carbon credit methodology.

-Smallholder farmers supported to plant trees on bunds.

-Corporate CSR funds channeled into long-term climate impact.

This project not only creates carbon credits but also delivers co-benefits like farmer income, soil health, and biodiversity.

3. Education + Climate Pilots

Group of school children in rural India holding colorful drawings during Anaxee’s Project Unnat chulha abhihyan awareness campaign, with a banner about clean cooking solutions displayed behind them.

-Combining school-level awareness programs with tree plantations.

-Creating a generation of climate-conscious youth.

These examples prove Anaxee’s ability to merge CSR, carbon, and community seamlessly.


How Corporates Benefit by Partnering with Anaxee
Graphic showing benefits for corporates partnering with Anaxee, including verified impact, carbon credits, ESG reputation, and co-benefits.

Corporates often hesitate to enter climate-linked CSR because of integrity risks. With Anaxee, they gain:

  1. Transparent Fund Utilization

    • Every rupee is traceable.

    • Corporates see exactly where and how their money is spent.

  2. Measurable Climate Impact

    • Verified metrics: CO₂ reduced, hectares restored, households impacted.

    • Projects aligned with SDGs and ESG frameworks.

  3. Enhanced Reputation

    • Corporates can communicate authentic stories to stakeholders.

    • Builds credibility with investors, regulators, and customers.

  4. Carbon Credit Potential

    • CSR funds can unlock long-term carbon credits for corporates.

    • This positions them ahead of compliance requirements like India’s Carbon Credit Trading Scheme (CCTS).


Long-Term Vision: Anaxee as India’s Climate Execution Engine

Roadmap infographic highlighting Anaxee’s long-term vision as India’s Climate Execution Engine with milestones for 2030, 2050, and 2070.

Anaxee is not solving for one CSR cycle. It is building the execution backbone for India’s climate action.

-Scaling CSR into carbon markets: Turning CSR spends into verified carbon assets.

-Aligning with India’s Net Zero 2070: Supporting corporates in meeting national targets.

-Global recognition: Positioning Indian CSR projects as credible contributors in the voluntary carbon market.

With its blend of tech, grassroots execution, and NGO empowerment, Anaxee is uniquely placed to become India’s climate execution engine.


Conclusion: Partner with Anaxee for Transparent CSR Climate Projects

The future of CSR is climate-linked, transparent, and accountable. Corporates can no longer afford token projects—they need real impact backed by data.

NGOs alone cannot ensure this. Corporates alone cannot reach villages. But with Anaxee, CSR funds can:

-Empower NGOs.

-Deliver measurable climate outcomes.

-Align with ESG and net-zero goals.

-Build credibility in carbon markets.

Anaxee is where CSR meets transparency, where technology meets community, and where corporates meet climate action.


About Anaxee:
Anaxee drives large-scale, country-wide Climate and Carbon Credit projects across India. We specialize in Nature-Based Solutions (NbS) and community-driven initiatives, providing the technology and on-ground network needed to execute, monitor, and ensure transparency in projects like agroforestry, regenerative agriculture, improved cookstoves, solar devices, water filters and more. Our systems are designed to maintain integrity and verifiable impact in carbon methodologies.

Beyond climate, Anaxee is India’s Reach Engine- building the nation’s largest last-mile outreach network of 100,000 Digital Runners (shared, tech-enabled field force). We help corporates, agri-focused companies, and social organizations scale to rural and semi-urban India by executing projects in 26 states, 540+ districts, and 11,000+ pin codes, ensuring both scale and 100% transparency in last-mile operations. Connect with Anaxee at sales@anaxee.com


 

Cookstoves to Carbon Finance: Lessons from Rwanda & Malawi for India’s Rural Climate Project

1. A Tale of Two Kitchens-

In a hillside village near Kigali, Aisha stirs beans on a shiny metal stove. Smoke no longer burns her eyes. Meanwhile, in Madhya Pradesh’s Betul district, Sunita still cooks on an open fire that blackens her thatch roof. The difference isn’t technology alone; it is finance.

Rwanda’s project earned Article 6 authorized carbon credits, sold them to premium buyers, and used the money to scale factory jobs and distribution. Malawi followed next. India- home to 100 million biomass-dependent households can be third, bigger, and faster. This blog picks apart the African playbook and maps each lesson to the Indian reality, with Anaxee’s last-mile network as the execution engine.

Rwanda, atmosfair and Gold Standard Launch First Carbon Credit Aligned with Paris Article 6
Photo Credit- Gold Standard

2. Quick Recap: Article 6 in Kitchen-Table English

– Old days: Anyone could buy a voluntary credit, retire it, and claim “carbon neutral,” even if the host nation also counted the same reduction in its NDC.
– New days: Host governments can grant or withhold a Letter of Authorization. If granted, they promise a corresponding adjustment—so no double counting.
– Result: Buyers wanting bullet-proof claims now pay more for these authorized units. Projects that secure LOAs early win big.


3. Case Study #1: Atmosfair’s Rwanda Clean-Cooking Programme

3.1 The Production Pivot

Atmosfair first assembled stoves in Germany. Shipping costs ate margin. With projected premium revenue, they risked moving tooling to Kigali. The gamble worked: local value-add impressed the government and sped up LOA approval.

Rwanda, atmosfair and Gold Standard Launch First Carbon Credit Aligned with Paris Article 6
Photo Credit- Gold Standard

Lesson for India: Domestic manufacturing- say in Jabalpur or Guwahati- signals long-term commitment and aligns with Make-in-India goals, smoothing state-level clearances.

3.2 Data Discipline

Each Rwandan household answers periodic mobile surveys, backed by sensor data (temperature and usage). Gold Standard auditors loved the hard evidence, cutting questions about over-crediting.

Anaxee angle: Digital Runners can replicate this by embedding Bluetooth stove loggers and using the Anaxee app for survey sync.


4. Case Study #2: Hestian’s Malawi Rural Stove Network

Metric Detail
Households Reached 1.4 million since 2008
Authorization Timeline 4 months (July–Dec 2023) from first draft to LOA
Driver Buyer demand: airlines needed Article 6 units
Key Enabler Malawi Carbon Market Initiative launched by presidential decree
Verification Approach Community-based monitoring + third-party spot-checks
4.1 Trust Over Templates

Malawi lacked a formal Article 6 law, yet officials showed readiness. Hestian offered full transparency—open PDD drafts, community letters, financial projections. Trust, not bureaucracy, closed the gap.

Take-away for India: Even if national CCTS rules are pending, project developers can start dialogues today with state environment departments and the re-notified DNA.

4.2 Scale and Equitable Split

Hestian built in a share-of-proceeds mechanism: 2 % of gross revenue funds Malawi’s national cleaner-cooking roadmap. The proposal boosted political goodwill. India could mirror this by committing a slice of revenue to district health missions or women’s self-help groups- an alignment bureaucrats value.


5. Five Big Takeaways for India’s Cookstove & Agroforestry Space


6. How Anaxee Can Replicate- and Improve

  1. Hyper-granular Baseline. Digital Runners already conduct socio-economic surveys; add fuel-use metrics and GIS tags for stronger baseline accuracy.
  2. Drone Fly-overs Every Quarter. Confirm canopy growth in agroforestry corridors; footage auto-idles into IPFS (immutable ledger).
  3. Distributed Warehouse Model. 25 regional hubs store stoves/seeds, cutting logistics cost and emissions (extra SDG credit!).
  4. Immutable Ledger Sync. Sensor and drone data hashed to blockchain; auditable trail reduces verifier time and cost.
  5. Pay-per-Performance App. Household receives ₹ mobile top-ups when sensors prove daily stove usage—locks in behaviour change, slashes non-usage risk discounts.

7. Where the Money Will Come From in 2025-2028

– Airlines: Each tonne they emit above baseline must be offset; Phase 1 cap gets tighter in 2026. Authorized units are their only allowed currency.

– Singapore Inc.: DBS Bank, Temasek portfolio firms, and regulated power plants can use Article 6 credits to cover 5 % of emissions.

– EU-based Firms: Many now commit to “Beyond Value Chain Mitigation” with Article 6 alignment—think IKEA, H&M.

– Indian Corporates: New BRSR Core reporting norms push big listed companies toward verifiable, adjustment-backed tonnes for net-zero claims.


8. Frequently Asked Questions (Quick-Fire)

Q1. Does India already allow LOAs?
Draft template exists; final notification expected late 2025. Early pilots may use provisional letters via MoEFCC.

Q2. What if the government revokes the LOA?
Gold Standard rules hold back equivalent credits in an insurance pool; buyers refunded or replaced.

Q3. Are authorized credits double the price?
Current spot data shows 20–40 % uplift. As supply grows, premium may narrow but should remain >10 %.

Q4. Can agroforestry bundles qualify?
Yes, if permanence (>30 years) and leakage controls meet DNA guidelines. Anaxee’s drone monitoring helps.

Q5. Are sensors mandatory?
Not legally, but they slash uncertainty deductions and impress auditors—cheap insurance in practice.


9. Closing Call

Africa proved that even small countries with limited resources can release Article 6 authorized credits in under six months. India has bigger talent, bigger markets, and bigger climate needs. All it takes is organised data, honest partnerships, and smart field logistics—the things Anaxee does every day.

Ready to turn smoky kitchens into verifiable climate finance?
Scedule a 30 minute call with us at sales@anaxee-wp-aug25-wordpress.dock.anaxee.com Let’s cook up India’s next carbon success- one authorized credit at a time.

About Anaxee: Anaxee is India’s Reach Engine! we are building India’s largest last-mile outreach network of 100,000 Digital Runners (shared feet-on-street, tech-enabled) to help Businesses and Social Organizations scale to rural and semi-urban India, We operate in 26 states, 540+ districts, and 11,000+ pin codes in India. We Help in last-mile execution of projects for (1) Corporates, (2) Agri-focused companies, (3) Climate, and (4) Social organizations. Using technology and people on-the-ground (our Digital Runners), we help in scale and execute projects across 100s of cities and bring 100% transparency in groundwork. We also work in the Tech for Climate domain, providing technology for the execution and monitoring of Nature-Based (NbS) and Community projects. Our technology & processes bring transparency and integrity into carbon projects across various methodologies (Agroforestry, Regen Agriculture, Solar devices, Improved Cookstoves, Water filters, LED lamps, etc.) worldwide.

Taking the data of Beneficiary while Distributing the Improved Cookstove in Clean Cooking Project in India

Improved Cookstoves Project in India: Digital Intervention in Distribution

Problem with Traditional ICS Distribution Process
Most Improved Cookstove projects struggle during the distribution phase. They don’t know exactly who should get the cookstove or where to carry out the distribution. So, they just go for bulk distribution and hope it works. But to make clean cooking project successful, you need proper data, planning and technology.

Digital Intervention in ICS Distribution Process
Digital intervention should begin much before the distribution. You should already know your beneficiaries before handing over the cookstoves. This is only possible if you do a 100% baseline survey in the beginning- not just a small sample. You need complete information like how people cook, what fuel they use, their family size and whether they are actually eligible for the ICS or not.

Beneficiaries receiving improved cookstoves as part of a community distribution initiative, each tagged with unique serial numbers.
Improved cookstoves being distributed to rural households in Bihar, with detailed digital tracking for each unit through serial numbers and GPS data.

With this data, you can filter out those who are not eligible and focus only on those who really need the stove. This is where digital intervention helps the most. Using technology, you can easily manage this large data and make better decisions.

For example- During the distribution, we do digital verification of the beneficiary using the data collected earlier. This ensures that the right person is receiving the cookstove. It avoids any fraud or duplication and keeps the process clean and transparent.

This same data also helps to decide the best locations for distribution centres. Using the GPS data, we can select the best storage and distribution points close to the beneficiaries. This saves their time and makes logistics simpler.

Satellite map showing clustered baseline survey data points for the clean cooking project.

At the distribution site, we also take a photo of the beneficiary with the ICS. Their agreement or consent is taken in a digital format as proof. All of this becomes a proper record- easy to verify and report during audits.

This is how the distribution process should be done- planned, verified and data-backed.
Not like the way where you enter a village with a truck full of cookstoves and start giving them away on the spot. That may look easy, but it creates confusion, misuse and poor results. Instead, with the right digital intervention and proper groundwork, every stove reaches the right person. So in the end, you’re not just distributing cookstoves- you’re building trust, transparency, and accountability into every step of your project.

At Anaxee, this is the approach we follow. If you also want to structure your clean cooking/ Improved Cookstove project in India better, connect with us at sales@anaxee-wp-aug25-wordpress.dock.anaxee.com