In a groundbreaking agreement, Google has committed to purchasing 1 million carbon credits from Indian startup Mitti Labs, focusing on reducing methane emissions from rice farming, a critical step toward its goal of achieving net-zero emissions by 2030.
Google has entered into a substantial four-year agreement with Mitti Labs, a climate-tech startup based in India, to acquire 1 million carbon credits through 2030. This partnership is being characterized as the largest publicly announced deal for carbon credits derived from initiatives aimed at reducing methane emissions in rice farming.
The agreement spans rice farms across the Indian states of Karnataka, Andhra Pradesh, and Telangana, targeting approximately 100,000 hectares at peak delivery. Financial details of the deal have not been disclosed, but it forms part of Google’s broader strategy to meet its net-zero emissions target by 2030, particularly as the company faces rising greenhouse gas emissions.
Context of Google’s Emissions Challenge
According to Google’s environmental report released in June 2025, the company’s greenhouse gas emissions surged by 18% year-over-year, reaching approximately 14.5 million metric tons of carbon dioxide equivalent. This increase has heightened the urgency for Google to invest in carbon offset projects, especially as it continues to expand its artificial intelligence infrastructure, which is energy-intensive.
Xavier Laguarta, co-founder of Mitti Labs, revealed that discussions with Google began nearly a year ago, as the tech giant sought to diversify its carbon credit portfolio with projects focused on methane reduction. Google’s interest was particularly driven by the water conservation benefits of Mitti Labs’ agricultural practices, which have demonstrated the potential to reduce methane emissions by approximately 50% while simultaneously cutting irrigation water use by about 40% without compromising crop yields.
Over the past two years, Mitti Labs has reportedly saved over 500 billion liters of water through its initiatives, underscoring the environmental impact of its work. The agreement with Google is expected to enhance Mitti Labs’ ability to scale its operations, thus facilitating further collaborations with large corporate buyers.
Thorough Evaluation Process
Laguarta elaborated on the rigorous evaluation process undertaken by Google prior to finalizing the agreement, which included an in-depth examination of Mitti Labs’ monitoring technology and on-site visits to the rice farms involved. Founded in 2023, Mitti Labs utilizes a GeoAI platform that integrates satellite radar imagery and field measurements to monitor key agricultural metrics such as crop growth, soil moisture, and flooding across smallholder farms.
The startup employs synthetic aperture radar imagery sourced from both commercial and public satellites, providing resolutions ranging from 50 centimeters to 10 meters. This advanced monitoring approach is complemented by proprietary data collected in the field, which is utilized to refine the AI models that underpin their operations.
The carbon credits generated through the collaboration can be certified under the Gold Standard or Isometric certification bodies, with an emphasis on third-party verification as part of the certification process. In addition to Google, Mitti Labs collaborates with other notable clients, including carbon marketplace Cool Effect, rice producer Ebro Foods, and agricultural company Syngenta.
Future Expansion and Community Impact
Laguarta highlighted that this deal represents Mitti Labs’ largest offtake agreement to date and positions the startup to engage with millions of farmers by 2030. A significant portion of the revenue generated from the projects is intended to benefit farming communities directly. However, specifics regarding the compensation structure for farmers participating in the Google initiative have not been disclosed.
While the current project is confined to India, Mitti Labs is poised to extend its operations to the Philippines later in 2023 and aims to penetrate markets in Indonesia and other Southeast Asian countries by 2027. Laguarta expressed optimism about the growth potential in the agricultural methane reduction market, noting that approximately 150 million farmers cultivate rice across India, Southeast Asia, and China.
Google’s Ongoing Commitment to Carbon Reduction
This partnership with Mitti Labs is not Google’s first investment in carbon removal initiatives within India. In January 2025, the company collaborated with Gurugram-based Varaha to purchase 100,000 tons of carbon credits, marking its inaugural large-scale acquisition of carbon credits in the country and the largest involving biomass-produced biochar.
In addition to carbon credit purchases, Google is actively pursuing clean energy projects to manage its supply chain emissions. The company has signed an agreement related to a 150-megawatt solar project in Rajasthan, which will augment its total contracted solar capacity in the state to 300 megawatts. This move reflects Google’s broader commitment to sustainability and reducing its environmental footprint.
As the global demand for sustainable practices increases, initiatives like the one between Google and Mitti Labs could serve as a model for other corporations seeking to mitigate their carbon footprints while supporting agricultural innovation and sustainable farming practices. The collaboration underscores the potential of technology-driven solutions to address pressing environmental challenges while fostering economic growth in agricultural communities.
