# Invasive tree fuels carbon credit deals with Google, Microsoft

2026-08-21T11:31:47+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

Global firms including Google and Microsoft are buying carbon credits from Varaha ClimateAg, a Gurugram startup, generated by converting Prosopis juliflora, an invasive tree in Gujarat's Banni grasslands, into biochar. A January 2025 deal saw Google agree to purchase 1,00,000 tonnes of carbon dioxide removal credits. Microsoft, Lufthansa, Swiss Re, and Capgemini have also signed agreements with Varaha. Mongabay-India's field reporting, however, raises questions about the project's actual benefits. In Sangnara village, biochar produced two years ago reportedly remains stockpiled in the open, not applied to soil as claimed. Varaha stated unmixed biochar cannot be submitted for credits, but locals note soil application is difficult in grazing areas and may inadvertently boost regrowth of the invasive tree itself. The Banni grassland, where Prosopis was introduced in the 1960s to fight desertification, now sees over 50% of its area dominated by this species. Fodder production has fallen from 4,000 kg per hectare in the 1960s to around 620 kg by 1999. Sahjeevan, an NGO involved in the pilot, says the Kachchh project processed 800 tonnes of Prosopis, generating about 2,000 carbon credits sold at roughly $120 each on the European voluntary market.

## Indian Opinion Analysis

The carbon-credit model hinges on measurable, durable carbon storage, but on-the-ground verification remains weak in India's unregulated voluntary market. The Banni case highlights a structural mismatch: biochar works best in farm soil, yet the invasive Prosopis juliflora dominates grazing land where ploughing is impractical. If credits are issued without proof of burial, buyers like Google risk reputational damage. The real test will come when Verra or Gold Standard auditors verify whether Varaha's registry claims match the stockpiles seen by villagers. Watch for the next audit report or a regulatory move by the government to bring voluntary credits under the proposed Indian Carbon Market framework, which could mandate physical verification.

## Coverage

- india.mongabay.com <https://india.mongabay.com/2026/08/the-carbon-market-bets-on-an-invasive-tree/>
  Frames carbon credit project as potentially flawed, highlighting unapplied biochar, regrowth of invasive species, and lack of community benefit.

This story was synthesised by AI from the source linked above.

Tags: Banni Grasslands, Google, Gujarat, Microsoft, Varaha ClimateAg
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