Key facts
- Google agreed to buy 1 million carbon credits from Mitti Labs by 2030.
- The deal is the largest publicly announced for credits from rice farming methane reduction.
- The project will pay farmers to adopt practices reducing methane emissions and water use.
- Mitti Labs' technique can cut methane emissions by about 50% and irrigation water use by about 40%.
- The agreement covers rice farms in Karnataka, Andhra Pradesh, and Telangana, reaching about 100,000 hectares.
- Mitti Labs uses a GeoAI platform combining satellite radar imagery and field measurements.
Google has signed its largest publicly announced deal to date for carbon credits generated from reducing methane emissions in rice farming, agreeing to purchase 1 million credits from Indian climate-tech startup Mitti Labs by 2030. The four-year agreement will cover rice farms across the Indian states of Karnataka, Andhra Pradesh, and Telangana, potentially reaching about 100,000 hectares at peak delivery. Mitti Labs co-founder Xavier Laguarta stated that the project will pay farmers to adopt practices that reduce how long rice fields remain flooded, thereby cutting methane released during cultivation and also reducing water use. The company claims this technique can cut methane emissions by approximately 50% and irrigation water use by about 40% without reducing crop yields. The deal supports Google's goal of reaching net-zero emissions by 2030, a challenge amid heavy investment in AI infrastructure. The tech giant's greenhouse gas emissions grew 18% year-over-year to about 14.5 million metric tons of carbon dioxide equivalent in 2025, according to its June environmental report. Mitti Labs began discussions with Google about a year ago, with the tech company interested in the project's water savings and Mitti Labs' scalability. The startup's projects have reportedly saved over 500 billion liters of water in the past two years. Google's rigorous due diligence included scrutiny of Mitti Labs' monitoring technology and farm visits. Mitti Labs, founded in 2023, utilizes a GeoAI platform that combines satellite radar imagery with field measurements for remote tracking of crop growth, soil moisture, and flooding on smallholder farms. The credits sold to Google can be issued under Gold Standard or Isometric certification and undergo independent third-party verification. Mitti Labs also works with other customers including Cool Effect, Ebro Foods, and Syngenta, and aims to work with millions of farmers by 2030, with a majority of revenue going to farming communities. The startup plans to expand operations to the Philippines later this year and into other Southeast Asian markets in 2027. This is not Google's first carbon-removal investment in India; in January 2025, it partnered with Varaha to buy 100,000 tons of carbon credits, its first large-scale purchase of biomass-produced biochar credits in the country. Google is also investing in clean-energy projects in India, including a 150-megawatt solar project.