Indigo Carbon PBC
What entity is providing the carbon program to farmers? What is the name of program that is verifying as Ag Carbon Transparent?
Provider: Indigo Carbon PBC
Program: Carbon by Indigo
Learn more: Indigo Ag | Sustainable Agriculture Solutions
Who does the provider intend to sign up for the program?
Carbon by Indigo is offered to farmers producing row crops within the continental United States meeting the eligibility requirements of the program. Eligible crops include corn, soybeans, wheat, rye, sunflowers, barley, cotton, millet, sorghum, milo, triticale, canola, dry beans, peas, oats, flax, peanuts and sugar beets.
Minimum acreage requirement is 150.
Learn More: Carbon by Indigo Agreement, section 1. Additional eligibility information is available at https://indigoag.help/en/.
What are the environmental assets that are being measured, generated and monetized by the program?
The program generates carbon credits based on the amount of carbon dioxide, carbon dioxide equivalent or other greenhouse gas (GHG) emissions sequestered or avoided on program fields. . Each carbon credit issued under the program represents approximately one verified metric ton of GHG emissions sequestered or avoided.
Learn More: Carbon by Indigo Agreement, section 2
Does the provider use a third party protocol/methodology to measure and verify environmental assets (MMRV)?
Yes. Carbon by Indigo carbon credits are independently verified by approved verification bodies chosen by Indigo in its sole discretion. Carbon by Indigo Project information is publicly available in the Climate Action Reserve’s online registry system: Climate Action Reserve.
Learn More: Carbon by Indigo Agreement, section 3.
Does the contract explain how payments are calculated, what the anticipated timing for payments will be, and payment contingencies?
Yes. Payments to farmers are based on the amount of greenhouse gas sequestered or avoided from the practices farmers adopt.
How are payments calculated? The number of verified carbon credits that may be issued and allocated to enrolled land will be based on the volume of GHGs sequestered or avoided, as determined using Indigo methodologies, and net of any buffer account contribution or similar holdback mechanisms intended to protect against reversals and other risks. The holdback is approximately 20% of total GHGs sequestered or avoided and is determined by the carbon credit issuer (for example, Climate Action Reserve) and Indigo.
What is the timing for payments? Payments under Carbon by Indigo are subject to vesting and multi-year obligations. Program payments are subject to vesting in five (5) installments over a period of five (5) calendar years, vesting annually for 50%, 20%, 10%, 10% and 10% of the total payment (in respective order), with the first payment to be made after verification and completed sale by Indigo of the applicable Carbon Credits, and annual payments thereafter.
What are the payment contingencies? Payment is contingent on verified carbon credits being issued, sold, and paid for by a buyer, the participating farmer’s ongoing compliance with program requirements, good standing in the program, and satisfaction of vesting conditions. Payment is not guaranteed.
Learn more: Carbon by Indigo Agreement, Section 2; Indigo Additional Terms, Sections titled Payment, No Guarantees.
Does the contract allow the provider to change requirements from one year to the next?
Yes. Program operations may change from time-to-time to capture program operational improvements or efficiencies. As such, eligibility requirements, methodologies, payment rates, verification practices, and other program operational policies and practices are subject to change. In addition, the terms of the farmer’s participation may be amended by Indigo after the contract begins, subject to notice provisions and opportunities for farmers to opt-out of the program.
Learn more: Carbon by Indigo Agreement, Section 7.b.
Is land ownership required for participation?
No. Land ownership is not required. The program is open to tenants and operators as well as landowners, provided they have the authority to enroll the land, have primary control over the operation of the land, and comply with program obligations.
Learn more: Carbon by Indigo Agreement, Section 1.
Does the contract impose costs or penalties for early termination?
Yes. Early termination results in forfeiture of all future unvested payments. If a grower terminates participation or is terminated by Indigo before the end of the term, any unvested carbon payments are permanently forfeited. Indigo does not claw back payments under the carbon program, except in cases of fraudulent or bad faith acts or other intentional misconduct during participation.
Learn more: Carbon by Indigo Agreement, Section 2.d.
Is access to the farm required for participation?
Yes. Participating farmers grant Indigo, its representatives, soil sampling vendors, and third-party verifiers the right to enter and access enrolled land for program verification purposes, if required.
Learn More: Carbon by Indigo Agreement, Section 5.a.
Does the contract prohibit participation in other programs?
Yes, with respect to programs covering the same attributes. The contract establishes exclusivity for the generation of carbon credits and carbon attributes on enrolled land. A “carbon attribute” means any claim, characteristic, credit, benefit, emissions reduction, rights to claim any emissions reduction, tax credit or emissions reduction credit, offset, or allowance, or other tradable and transferable indicia, howsoever entitled, named, registered, created, measured, allocated, validated, hereafter recognized or deemed of value (or both) by any person, representing any measurable and/or verifiable aspect, claim, characteristic or benefit identified, whether social or environmental, related to GHGs reductions through the use of environmentally beneficial agricultural practices. Growers may not double-enroll land in another carbon or environmental credit program covering the same attributes. However, participation in the program does not restrict participation in USDA, Farm Service Agency, or other government subsidy programs, if those payments are unrelated to carbon credits or carbon attributes.
Learn More: Carbon by Indigo Agreement, Sections 2.b and 4.
