Aid by Trade Foundation, International Cotton Advisory Committee and bizpando start cooperation

Sustainability and economic benefits for smallholder farmers

By using sustainable agricultural strategies such as the use of biochar, minimal tillage and the cultivation of cover crops, up to 5.75 tonnes of CO? per hectare per year can be sequestered in the soil. This potential not only offers important opportunities for climate protection but also brings considerable economic benefits for producers.

As part of the newly concluded cooperation between AbTF, ICAC and bizpando, African farmers who grow cotton in accordance with the Cotton made in Africa (CmiA) standard benefit from additional income from the sale of carbon credits. At the same time, their costs are lowered as the use of pesticides and fertilisers can be reduced. In addition, improved soil quality and the water-retaining properties of biochar lead to higher agricultural yields. Tina Stridde, Managing Director of the Aid by Trade Foundation, emphasises: "Our work is grounded in the principles of climate-smart agriculture, which not only protects the environment and conserves resources but also enhances the productivity of cotton producers. Beyond the licensing income generated from Cotton made in Africa-verified cotton, collaborations like this foster sustainable opportunities for smallholder farmers in Africa."

Climate protection through carbon credits

The use of biochar can make a decisive contribution to climate protection and soil fertility. Keshav Kranthi, Chief Scientist at ICAC, explains: "Biochar improves soil structure, stores water and nutrients and promotes microbial growth. It is a sustainable solution that has a positive impact on both the environment and the profitability of agriculture." Eric Trachtenberg, Executive Director ICAC adds: "With simple techniques, cotton farmers can improve the quality of their soil and at the same time sequester carbon in the soil for more than 100 years. We support them in this endeavour."

Technological implementation by bizpando

bizpando plays a central role in the digital implementation of this project. A GPS-supported measurement system is being developed to map the areas under cultivation of smallholder farmers in such a way that double counting of areas can be ruled out. The platform will also enable digital recording to validate cotton production to reliably verify the origin and quantity of carbon credits. The bizpando platform will be used to issue the necessary certificates for the carbon credits, market them directly and ensure that proceeds are paid out directly to the farmers. "Our project combines digital solutions for climate protection with social responsibility. Using simple methods and complex digital background processes, we help farmers to operate more sustainably while significantly increasing their income. This allows us to reduce administrative costs and maximise the farmers‘ benefit from the cooperation," explains Jasper Bhaumick, CEO of bizpando AG.

Next steps

Over the next few months, the partners plan to expand the bizpando platform technically to include digital solutions for land surveying and payment methods, acquire certifications and prepare local measures such as training and further collaboration with stakeholders. The first carbon credits are to be generated by 2026 at the latest, and local activities have already been initiated.