Google Commits to Largest Rice-Methane Carbon Credit Purchase from Indian Climate Startup

Google is purchasing 1 million carbon credits from Indian climate-tech firm Mitti Labs through 2030, representing what both organizations describe as the largest publicly disclosed transaction to date for credits stemming from methane reduction in rice cultivation. The arrangement spans four years and encompasses rice-growing regions in Karnataka, Andhra Pradesh, and Telangana, with operations reaching approximately 100,000 hectares at full scale, according to Mitti Labs co-founder Xavier Laguarta. The companies have not released financial details of the transaction.

Under the initiative, farmers will receive compensation for implementing methods that shorten the flooding duration of rice paddies, thereby decreasing methane discharge during the growing season and simultaneously lowering water consumption. Mitti Labs indicates that this methodology achieves roughly 50% reduction in methane emissions and approximately 40% decrease in irrigation water requirements while maintaining agricultural productivity levels.

The agreement arrives as Google pursues its net-zero emissions objective by 2030 while simultaneously investing substantially in artificial-intelligence computing infrastructure. According to Google's environmental report released in June, the company's greenhouse gas emissions climbed 18% in 2025 compared to the previous year, totaling roughly 14.5 million metric tons of carbon dioxide equivalent.

Discussions between the two organizations commenced approximately one year prior, with Google seeking to incorporate methane-reduction initiatives into its carbon-credit holdings. The technology company was particularly interested in the initiative's water conservation benefits and Mitti Labs' capacity to function at commercial scale, Laguarta explained.

Mitti Labs has conserved over 500 billion liters of water during the preceding two years through its operations. According to Laguarta, the Google transaction will facilitate Mitti Labs' expansion and provide the operational scale required to serve major corporate customers.

Having Google, one of the most sophisticated buyers in the market with rigorous due diligence processes, is obviously a good signal for us

Xavier Laguarta, Mitti Labs co-founder

Laguarta noted that the arrangement would enable Mitti to achieve significant growth.

Technology and Verification

Google's assessment encompassed detailed examination of Mitti Labs' monitoring infrastructure and on-site farm inspections before finalizing the partnership. Established in 2023, the startup maintains offices in New York and Bengaluru and has developed a GeoAI platform integrating satellite radar data with ground-level measurements to monitor crop development, soil conditions, and water levels across smallholder farming operations.

The platform leverages synthetic aperture radar imagery sourced from both commercial and publicly available satellites, with image precision spanning from 50 centimeters to 10 meters. Mitti supplements this with field-collected proprietary information used to refine its artificial-intelligence algorithms, Laguarta stated.

Credits destined for Google will receive certification through either Gold Standard or Isometric, two recognized carbon-credit verification organizations, Laguarta indicated. He emphasized that all initiatives undergo independent third-party assessment as a prerequisite for credit issuance through the certification framework.

Market Expansion and Future Plans

Beyond Google, Mitti Labs collaborates with entities including the carbon marketplace Cool Effect, rice manufacturer Ebro Foods, and agricultural supplier Syngenta. Laguarta disclosed that the Google arrangement constitutes Mitti Labs' most substantial offtake agreement to date.

The startup presently engages with more than 100,000 farming households and aspires to collaborate with millions by 2030. Laguarta stated that the Google transaction will support this expansion by enabling the company to scale its operations.

The bulk of earnings from the startup's initiatives flows back to agricultural communities. Laguarta declined to specify the compensation amount that participating farmers would obtain from the Google initiative.

Although the Google initiative concentrates on India, Mitti Labs intends to commence operations in the Philippines this year and penetrate Indonesian and additional Southeast Asian territories in 2027.

Laguarta perceives substantial potential for market development as organizations increasingly pursue agricultural initiatives to combat methane discharge. He informed TechCrunch that roughly 150 million farmers cultivate rice throughout India, Southeast Asia, and China.

Google's Broader Carbon Strategy in India

The Mitti Labs arrangement represents a continuation of Google's carbon-reduction initiatives within India. In January 2025, the Mountain View, California-based corporation established a partnership with Varaha, a Gurugram-headquartered firm, to procure 100,000 tons of carbon credits. This transaction marked Google's inaugural substantial acquisition of carbon removal credits in the nation and the most extensive transaction involving biochar manufactured from biomass.

Google is also leveraging renewable-energy initiatives in India to mitigate supply-chain emissions. The organization has finalized an arrangement connected to a 150-megawatt solar installation in Rajasthan, bringing its total contracted solar generation capacity with ReNew in that region to 300 megawatts.