New Delhi — Mirova, a Paris-headquartered asset management firm focused on sustainable investment and an affiliate of Natixis Investment Managers, has announced a $30 million (around ₹250 crore) investment in the Kheti soil carbon project developed by Indian company Varaha. The project aims to support smallholder farmers in Haryana and Punjab to adopt regenerative agriculture practices that improve soil health and generate carbon credits.
The investment represents Mirova’s first carbon transaction in India and its largest single commitment under its nature-based carbon strategy. Mirova said the partnership reflects its plan to expand high-integrity climate finance projects in Asia.
Varaha, founded in 2022 and headquartered in Gurgaon, develops carbon projects across South Asia. It works on regenerative agriculture, biochar (a form of carbon-rich material produced from plant matter), and agroforestry to reduce greenhouse gas emissions and improve soil productivity.
Under the Kheti project, more than 337,000 smallholder farmers across 675,000 hectares will transition to methods such as direct seeding of rice, crop residue management and reduced tillage. These practices, according to Varaha, help increase soil carbon while reducing emissions from stubble burning and water use.
The project will generate carbon credits under the Verra VM0042 methodology, an international framework for soil carbon projects, and share the proceeds with farmers. It is also expected to achieve Climate, Community and Biodiversity (CCB) certification, which assesses a project’s environmental and social impact.
Varaha uses a digital monitoring, reporting and verification (MRV) platform to track soil data and project outcomes. The firm said this approach ensures transparency in credit generation and income distribution to farmers.
Varaha Managing Director and CEO Madhur Jain, said the investment validates efforts to make regenerative agriculture a core part of India’s climate strategy. “Our work with thousands of smallholder farmers demonstrates that large-scale carbon projects can deliver both environmental and livelihood benefits,” he said.
Charlotte Lehmann, Senior Investment Director, Mirova, said the transaction marks a significant step in expanding nature-based investment in the region. “This project opens up new opportunities to scale high-integrity investments across the Asia-Pacific region,” she said.
Since 2020, Mirova has mobilised more than $350 million globally for nature-based carbon projects under its natural capital platform. The company manages about €33 billion in assets and focuses on projects that combine long-term financial returns with environmental and social outcomes.
Varaha operates 13 carbon projects across India, Nepal and Bangladesh. Through initiatives like Kheti, it aims to link carbon finance directly to smallholder agriculture, helping farmers access global carbon markets while encouraging sustainable land management practices.
The Kheti project is part of a broader effort by both firms to demonstrate how private capital can support climate mitigation in agriculture, one of India’s most emission-intensive sectors.
