CITI, ICAC and geoclara Sign MoU to Advance Regenerative Cotton and Carbon Credit Income in India

Insights

• The Confederation of Indian Textile Industry (CITI) has signed an MoU with ICAC and Merago Inc. (geoclara) to develop carbon credit projects built on regenerative cotton farming.

• geoclara will provide the digital platform for implementation, MRV and carbon asset management — turning improved soil health into verified, saleable carbon credits with revenue shared with farmers.

What if India's cotton fields could earn twice, once from the fibre, and again from the carbon they draw down into the soil? That is the premise of a new partnership formalised between the Confederation of Indian Textile Industry (CITI), the International Cotton Advisory Committee (ICAC) and Merago Inc., the technology company behind geoclara.

The MoU, exchanged during the 56th Foundation Day celebrations of the Cotton Corporation of India on August 1 in the presence of Union Textiles Minister Giriraj Singh, Maharashtra ministers Sanjay Shirsat, Sanjay Savkare and Atul Save, Joint Secretary (Fibre) Padmini Singla, Textile Commissioner Vrunda Manohar Desai and CCI CMD Lalit Kumar Gupta, establishes a framework to develop carbon credit projects based on regenerative agricultural practices — advancing regenerative cotton production in India while opening a new income stream for cotton farmers.

Industry plus farmer

"At CITI, it has always been about industry plus farmer. Our collaboration with the International Cotton Advisory Committee and Merago reflects that philosophy by strengthening sustainability in the Indian textile and apparel ecosystem and creating additional income opportunities for farmers," said CITI Chairman Ashwin Chandran.

"Given the increasing focus on sustainability worldwide, the CITI-ICAC-Merago tie-up will also increase the global competitiveness of India's textile and apparel industry by lowering the carbon footprint of India's cotton arena," Chandran added.

How the regenerative cotton partnership works

Each partner brings a distinct role:

• ICAC serves as the principal technical knowledge partner, providing agricultural expertise, technology, training and technical support.

• CITI CDRA (CITI-Cotton Development Research Association) leads project execution and farmer engagement. Farmers associated with CITI CDRA and its affiliated partners will adopt regenerative practices to improve soil health and increase carbon sequestration — including producing biochar and compost from agricultural biomass and applying them to cotton fields.

• geoclara (Merago) provides the digital technology platform for project implementation and oversees carbon asset management end to end — the same MRV and certification infrastructure behind ICAC's global carbon credits initiative.
  

Verified, compliant, farmer-first

Carbon credits generated under the project will be developed, verified and transferred in accordance with Article 6 of the Paris Agreement, India's applicable laws and carbon market regulations. Verified emission reductions and removals will be recorded in the national carbon registry before issuance, transfer or commercialisation.

Subject to regulatory approvals, a designated share of the verified carbon removals will be certified as transferable carbon credits for sale in domestic and international carbon markets. geoclara will manage the commercialisation of these credits and distribute proceeds among CITI, ICAC and participating farmers under an agreed revenue-sharing framework.

The bigger picture

India's textile and apparel sector is the country's second-largest livelihood generator after agriculture, and India is targeting a $350 billion textile and apparel industry by 2030, including $100 billion in exports. As global buyers increasingly demand low-carbon, traceable fibre, the ability to pair Indian cotton with verified climate outcomes is set to become a competitive advantage — and this partnership is designed to deliver exactly that, from the soil up.

For geoclara, this MoU extends our mission of making carbon removal measurable, verifiable and bankable for the people who actually do the work: farmers. We look forward to building this with CITI, CITI CDRA and ICAC in the seasons ahead.