Carbon Farming Program of Lithuania
Transforming agricultural practices across Lithuania.
The Carbon Farming Program of Lithuania, initiated by InSoil, is a large-scale regenerative agriculture initiative supporting the transition of conventional cropland toward climate-smart land management practices. The program incentivizes farmers to adopt improved agricultural practices that increase soil organic carbon while reducing emissions associated with fertilizer use and on-farm operations. The Baltic Sea is one of the most polluted seas in the world, primarily from agricultural fertilizer runoff; regenerative practices enrolled here directly reduce these impacts.
The project is implemented as a grouped program across Lithuania, enrolling multiple independent farms under a unified monitoring and verification framework. Emissions reductions and removals are quantified using the VM0042 methodology and RothC soil carbon modeling, with independent verification conducted by SCS Global. Verified results show an average sequestration rate of 2.11 tCO₂e per hectare per year, equivalent to approximately 35,000 tCO₂e annually and nearly 700,000 tCO₂e over the 20-year crediting period. Ninety-seven percent of the credits generated are carbon removals.
Project Activities & Carbon Removal Mechanism
The project implements a suite of improved cropland management practices designed to enhance soil carbon sequestration and reduce greenhouse gas emissions.
Key practices include:
- Residue management
- Cover cropping
- Reduced and conservation tillage
- Gradual optimization of synthetic fertilizer use
- Increased use of organic inputs where applicable
Carbon Removals: During the first monitoring period, residue management and cover cropping were adopted across all participating farms, while approximately half transitioned to conservation tillage, making soil organic carbon sequestration the majority of credits generated.
Carbon Reductions & Avoidance: Adjustments to synthetic fertilizer application and on-farm fuel use generate additional emissions reductions, implemented more gradually and contributing a smaller share of credits relative to removals.
Additionality
The project demonstrates additionality under Verra's regulatory surplus, common practice, and barrier analysis tests. Many participating farms faced financial and operational barriers that limited their ability to transition away from conventional, input-intensive farming methods. The project addresses these challenges through financial incentives, zero-interest loans, and technical guidance, helping farmers absorb the upfront costs and risks associated with changing long-standing practices. Carbon revenue plays a critical role in making these sustainable approaches economically viable, supporting investments in equipment, training, and operational improvements. Without this structured support, the widespread shift toward reduced synthetic fertilizer use, minimal tillage, and enhanced soil management would be significantly less feasible.
Baseline Scenario
Participating farms cultivate a range of common Lithuanian crops reflecting typical regional rotations — oilseeds such as winter and summer rapeseed, legumes including peas, broad beans, and buckwheat, and cereals such as winter and summer wheat, barley, oats, rye, and triticale. Lithuania is the 12th largest wheat exporter worldwide and has the 2nd highest agricultural financing gap in the EU relative to GVA. Under the baseline scenario, participating farms would continue conventional agricultural practices with limited adoption of cover cropping, residue management, or reduced tillage, resulting in lower soil organic carbon stocks and higher associated greenhouse gas emissions. The project establishes farmer-specific baselines, enabling conservative, site-specific quantification of improvements attributable to the implemented practice changes.
Common Practice: While certain sustainable agricultural practices exist in Lithuania, adoption rates for the integrated set of practices implemented under this project remain low. The combined adoption of these practices falls well below common practice thresholds, supporting the project's additionality.
Financial and Operational Barriers: Transitioning to regenerative agriculture involves meaningful upfront costs, operational complexity, and financial risk for farmers, including equipment upgrades, changes in agronomic management, and potential short-term yield variability. Given thin operating margins across much of the agricultural sector, most farms are unable to absorb these risks without external support. Carbon revenue and associated transition finance provided through the program are critical to overcoming these barriers and enabling large-scale adoption of improved land management practices.
Monitoring, Reporting and Verification (MRV)
The project applies Quantification Approach 1 ("model and measure") under VM0042 v2.0, combining direct soil sampling, biogeochemical soil carbon modeling using the RothC model, farmer-reported land management data, periodic re-measurement, and independent third-party validation.
Non-Permanence and Risk Management: The project applies Verra's AFOLU non-permanence risk framework, contributing 12% to a shared buffer pool, with 20-year contractual commitments (renewable up to 100 years), ongoing monitoring, performance-based incentives, and contractual penalties for non-compliance.
Regulatory Surplus: There are no regulatory requirements in Lithuania or the European Union mandating adoption of the practices implemented under this project.
Farmer Incentives and Transition Finance
The program provides participating farmers with financial and technical support, including revenue sharing from carbon credit sales (50-80% of proceeds go to farmers, portfolio average 62%), access to zero cash-interest transition finance, optional financing programs, and agronomic support, training, and technical guidance.
Co-Benefits: Beyond its climate impact, the program delivers meaningful environmental, economic, and social co-benefits. Regenerative practices improve soil health and fertility, reduced nutrient runoff contributes to better water quality, and enhanced soil structure increases resilience to drought and climate variability. Economically, the program strengthens rural stability and prioritizes knowledge transfer and capacity building.
Project Impacts
Sustainable Development Goals in action
A universal blueprint for a better world—Anew is helping deliver on the United Nations global vision for social, economic, and environmental sustainability.
Zero Hunger
The project supports farmers by providing access to resources and training, contributing to increased food production, improved access to nutritious food, and the promotion of sustainable agricultural practices.
Good Health and Well-Being
By reducing reliance on synthetic fertilizers and improving water quality through lower nutrient runoff, the project supports healthier environments for farming communities and surrounding ecosystems.
Clean Water and Sanitation
The project promotes organic farming practices and the use of fewer fertilizers, resulting in reduced run-off and chemicals in receiving water bodies.
Decent Work and Economic Growth
The project activities increase crop yield and reduce crop vulnerability in times of extreme stressors, increasing availability of calorie- and nutrient-rich food.
Industry, Innovation and Infrastructure
The project provides unique financial solutions to enrolled farmers and reduces financial barriers to improved agricultural and land management practices.
Responsible Consumption and Production
The project reduces the use of pesticides, fertilizers, and other chemical inputs, promoting responsible consumption within agriculture.
Climate Action
Through the adoption of regenerative practices that sequester soil carbon and reduce greenhouse gas emissions, the project contributes directly to measurable climate mitigation outcomes.
Life Below Water
The program reduces the use of fertilizers and other chemicals, reducing the pollution of aquifers, rivers, lakes, and the Baltic Sea — the second most polluted water body in the world.
Life on Land
Improved soil management and reduced chemical inputs help restore soil health, enhance biodiversity, and promote more sustainable land use across agricultural landscapes.
