Google has struck what is believed to be the biggest publicly disclosed carbon credit agreement tied to reducing methane emissions from rice farming. The deal commits the company to buying one million carbon credits from Indian climate-tech startup Mitti Labs through 2030. The project spans the Indian states of Karnataka, Andhra Pradesh, and Telangana and will involve about 100,000 hectares of rice fields at its full scale.
How It Works: Reducing Methane & Saving Water
Mitti Labs will work with farmers to change how long rice paddies remain flooded—a method known to slash methane emissions. These changes aren’t just about climate impact: the techniques are projected to cut methane by roughly 50% and irrigation water use by around 40%, all without hurting yields.
Verification, Scale & Technology
To earn carbon credits, the initiative will meet standards set by Gold Standard or Isometric certification bodies, with third-party verification before credits are awarded. Mitti Labs uses a GeoAI platform combining satellite radar imagery (with spatial resolutions between 50 cm and 10 m) and on-farm measurements to monitor soil moisture, flooding, and crop growth across smallholder farms.
The startup has already saved more than 500 billion liters of water over the past two years. Working with over 100,000 farmers now, it plans to reach millions by 2030. This deal is Mitti Labs’ largest carbon credit offtake so far. Financial details were not made public.
Context: Google’s Emissions & India Strategy
Google is under pressure as it aims to reach net-zero emissions by 2030. In its latest environmental report for 2025, its greenhouse gas emissions rose 18% year over year to about 14.5 million metric tons CO₂ equivalent. The company, in its search for more methane-reduction credits, was particularly interested in projects combining water savings and the ability to scale.
This is not Google’s first large environmental investment in India. In 2025, the company partnered with startup Varaha to acquire 100,000 tons of carbon removal credits—at that time its biggest deal involving biochar. Also in India, Google has been ramping up clean energy, especially solar power projects such as its expanded capacity in Rajasthan through deals with ReNew.
Expansion Plans & Global Potential
Though this agreement is focused on India, Mitti Labs is preparing to roll out operations in the Philippines later this year and expand into Indonesia and other Southeast Asian markets in 2027. An estimated 150 million farmers across India, Southeast Asia, and China grow rice—placing a massive opportunity to scale methane-reduction through agriculture.
This deal marks a very tangible step forward in aligning agricultural practices with climate goals. Google’s embrace of methane-cutting techniques in rice farming not only supports its net-zero targets but also reinforces the growing value of carbon credits tied to food systems. The true test will be whether these projects can maintain scale, integrity, and farmer inclusion—and whether more corporations follow suit to make agriculture a centerpiece of climate mitigation.
