Collaborative Initiative Pools Funds Instead of Selling Carbon Credits to Drive Real-World Climate Action.

The new Exchange Market, developed by Soil Association Exchange, has been unveiled to help farmers collaborate with businesses eager to reduce supply-chain emissions.

By pooling funds from multiple companies rather than trading carbon credits, the initiative aims to reward agricultural producers who implement practical measures to lower greenhouse gas emissions on their farms.

This marks an important step toward meeting global sustainability goals, as the programme seeks to align farming practices with broader climate commitments and create shared value along the supply chain.

Lloyds played a pivotal role in convening key retailers and landowners, including the Co-Op, Lidl, and the Church Commissioners for England, to contribute to the fund in partnership with technical experts Finance Earth.

In addition, a farmer steering group was involved in shaping the initiative from the ground up, ensuring that those working directly on the land have a say in how to drive meaningful change.

As stated in the report, companies joining the programme aim to reduce their Scope Three emissions those generated indirectly through supply chains or broader operational footprints while providing tangible support for farmers’ transitions to lower-emission methods.

Farmers who sign up for Exchange Market will receive guidance from Soil Association Exchange advisors to develop action plans that match their specific needs.

The programme supports a range of on farm interventions, such as introducing nitrogen-fixing companion crops to decrease fertilizer reliance, improving fuel efficiency, or investing in solar panels.

These tailored plans empower farmers to take ownership of their environmental strategies while benefiting from expert input.

The financial incentive for participants stands at £60 per tonne of CO2 equivalent reduced annually, with half of the payment provided upfront to ease the cost of adopting new practices.

Critically, farmers who already maintain below average emissions levels calculated through the Farm Carbon Toolkit used by Soil Association Exchange will also be acknowledged for their ongoing efforts.

Those who meet this benchmark are eligible for maintenance payments, ensuring that pioneers in low-carbon agriculture are rewarded and encouraged to continue their exemplary performance.

This approach recognizes the varied starting points of different farms, reflecting the programme’s emphasis on practical, farmer led solutions rather than one-size-fits-all mandates.

“This carbon insetting programme demonstrates that delivering true environmental outcomes can go hand in hand with financial resilience when farmers and businesses collaborate to build a sustainable future for food and farming,”

Joseph Gridley, Soil Association Exchange Chief Executive

He emphasized the power of collective action between businesses and the agricultural sector, highlighting how collaboration can drive greater scalability, affordability, and measurable progress in reducing agricultural emissions.

The first round of funding for Exchange Market has secured £1 million, with contributions from businesses aligned in their commitment to address climate change within their supply networks.

The underlying principle is straightforward: reducing emissions on farms helps companies move closer to their environmental targets, while farmers benefit financially and gain valuable support.

This dynamic creates a shared responsibility for cutting greenhouse gases, one that puts practitioners at the heart of strategies designed to tackle the climate crisis.

“It represents a major step forward in aligning farming activities with climate goals and demonstrates the power of what can happen when businesses and farmers work together,” Gridley added.

His remarks reflect a growing consensus that multi-stakeholder partnerships are essential for advancing sustainable agriculture.

By connecting retailers, investors, and farmers in a collective effort, the Exchange Market aims to provide an efficient and equitable method of cutting greenhouse gases at the source farms themselves.

Farmers who wish to participate begin by completing a baseline assessment of their operations, followed by a verified emissions reduction plan.

With the guidance of Soil Association Exchange advisors, this plan outlines the specific steps needed to reduce carbon dioxide equivalent emissions and quantifies the anticipated results.

Farmers then receive annual payments proportionate to their verified emissions reductions, ensuring accountability and transparency for all parties.

Importantly, participation in the programme does not involve selling carbon credits; rather, it centers on insetting direct investment in emissions reductions within existing supply chains.

Beyond the immediate benefits, this new model highlights a broader shift in how businesses and agricultural producers can cooperatively address climate concerns.

By pooling funds, creating clear metrics for success, and providing incentives for continual improvement, the Exchange Market could become a blueprint for future carbon insetting programmes.

Instead of viewing agriculture simply as a source of emissions, initiatives like this one shine a spotlight on the potential for farms to serve as front-line stewards of the environment.