ImpactSustainability6 MIN READ

Salesforce Signs a Deal to Buy 500,000 Methane Credits From Mitti Labs, Backing Water-Saving Rice Farming on Indian Smallholder Farms

Salesforce has signed a five-year agreement to buy 500,000 methane-reduction credits from Mitti Labs by 2030, supporting climate-smart rice farming across tens of thousands of smallholder farms in India. The project uses alternate wetting and drying, verified with satellite data, and Mitti Labs estimates it could save 700 billion litres of water.

By Prathista Lazar · Author30 October 2026New
Salesforce Signs a Deal to Buy 500,000 Methane Credits From Mitti Labs, Backing Water-Saving Rice Farming on Indian Smallholder Farms

Rice is a staple for more than half of the world's population, and India is one of its largest producers. But the way rice is traditionally grown, in fields kept flooded for months, makes it a significant source of methane, a greenhouse gas far more potent than carbon dioxide in the short term. A new agreement between a global technology company and a climate startup aims to change farming practices across tens of thousands of Indian farms.

Salesforce has signed a five-year carbon credit agreement with Mitti Labs under which it will purchase 500,000 methane-reduction credits by 2030, according to SustainabilityOnline on Thursday, October 29. The deal will support climate-smart rice farming across tens of thousands of smallholder farms in India.

The project uses a technique known as alternate wetting and drying, with satellite data used to verify results. Mitti Labs estimates the partnership could save 700 billion litres of water.

Why rice emits methane

When rice paddies are flooded, the water cuts off oxygen to the soil. Microbes that thrive in these oxygen-free conditions break down organic matter and produce methane, which escapes into the atmosphere through the water and the rice plants themselves. Rice cultivation is estimated to account for about a tenth of global man-made methane emissions.

Methane is a powerful greenhouse gas, trapping much more heat than carbon dioxide over a 20-year period, although it remains in the atmosphere for a shorter time. Because of this, cutting methane emissions is seen as one of the fastest ways to slow near-term warming. More than 150 countries have joined the Global Methane Pledge, which aims to cut methane emissions significantly by 2030, though India has not signed it.

Alternate wetting and drying

Alternate wetting and drying is a water management technique in which farmers allow their paddies to dry out periodically, rather than keeping them continuously flooded. When the water level falls below a certain point, farmers re-flood the field. The periodic drying allows oxygen into the soil, reducing the activity of methane-producing microbes.

Research has shown that the technique can cut methane emissions from rice fields substantially while also reducing water use, often without significantly affecting yields. It has been promoted by agricultural research organisations, including the International Rice Research Institute, as a practical climate solution for rice farmers.

However, adoption has been limited, partly because farmers need training, reliable irrigation and confidence that their yields will not suffer. Financial incentives, such as payments from carbon credits, can encourage farmers to change their practices.

How the carbon credits work

Under the agreement, Mitti Labs works with farmers to adopt alternate wetting and drying and measures the resulting reduction in methane emissions. Each credit represents a verified reduction of greenhouse gas emissions, typically one tonne of carbon dioxide equivalent. Salesforce buys these credits to help meet its own climate commitments, providing revenue that can be shared with farmers.

Satellite monitoring is central to the model. By using satellite imagery to track whether fields are flooded or dry, Mitti Labs can verify that farmers are following the practice across large numbers of farms, without relying solely on manual inspections. This addresses one of the main challenges of agricultural carbon credits: verifying that claimed emission reductions actually occur.

Water savings

The estimated savings of 700 billion litres of water could be significant for India, where agriculture accounts for the vast majority of freshwater use and groundwater levels are falling in many regions. Rice is one of the most water-intensive crops, and in states such as Punjab and Haryana, the cultivation of rice has contributed to severe depletion of groundwater.

“Rice feeds billions but also releases significant methane; changing how paddies are flooded is one of agriculture's most practical climate fixes.”
— TIGI Impact Desk

Reducing the water needed for rice cultivation could help conserve groundwater, reduce the energy used to pump it and make farming more resilient to drought and erratic monsoons, which are expected to become more common as the climate changes.

Salesforce's climate strategy

Salesforce has been among the more active technology companies in climate action. It has committed to reaching net-zero emissions across its value chain and has invested in carbon removal and nature-based solutions. It has also supported reforestation and ecosystem restoration projects, including through the global trillion trees movement.

Methane reduction credits from agriculture offer a different kind of climate benefit. Rather than removing carbon from the atmosphere, they prevent emissions that would otherwise occur. Companies typically use such credits to compensate for emissions they cannot yet eliminate from their own operations and supply chains.

The integrity debate

The voluntary carbon market has faced intense scrutiny in recent years over concerns that some credits overstate their climate benefits. Investigations have found problems with certain forest protection projects, leading to calls for stronger standards and verification. Buyers are increasingly seeking credits that are high quality, with robust measurement and independent verification.

Agricultural methane credits face their own challenges, including accurately measuring emissions reductions across many small farms and ensuring that farmers continue the practices over time. The use of satellite data and scientific measurement methods is intended to address these concerns, but the integrity of such credits will depend on rigorous verification.

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Benefits for farmers

For smallholder farmers, carbon credit payments can provide an additional source of income, which is particularly valuable given the low incomes and financial pressures many face. Reduced water use can also lower irrigation costs, particularly for farmers who pay for electricity or diesel to run pumps.

Ensuring that farmers receive a fair share of the revenue from carbon credits is an important consideration. Critics have warned that intermediaries sometimes capture most of the value, leaving farmers with little benefit. Transparent arrangements and direct payments to farmers can help address these concerns.

India's role in climate solutions

India is the world's largest exporter of rice and one of its two biggest producers, alongside China. Changing farming practices at scale in India could have a significant impact on global agricultural emissions. Indian climate tech startups, including Mitti Labs, are developing solutions that combine agriculture, technology and carbon markets.

India has also been developing its own carbon market, with a framework for a domestic carbon credit trading scheme. Agricultural projects could eventually play a role in this market, alongside industrial emission reductions.

A model for scale

The size of Salesforce's commitment, 500,000 credits over five years, provides Mitti Labs with predictable revenue to expand its programme. Long-term purchase agreements are valuable for climate startups because they reduce financial uncertainty and help attract additional investment. If successful, the partnership could serve as a model for other companies seeking high-quality agricultural carbon credits.

What comes next

Mitti Labs will work to expand its programme across more farms and regions, while Salesforce will monitor the delivery of credits over the five-year period. The success of the partnership will depend on farmer adoption, accurate verification and the durability of emission reductions. If it delivers on its targets, the deal could demonstrate how technology, carbon finance and traditional farming practices can come together to cut emissions, save water and support farmers' livelihoods.

TagsMitti LabsSalesforcecarbon creditsmethanerice farmingalternate wetting and dryingclimate-smart agriculturesmallholder farmerswater conservationsatellite monitoringIndian agricultureclimate techcarbon marketsnet zerosustainabilityfood securityagritechIndian startupsESGclimate change

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