Mitti Labs Inks Four‑Year Pact with Google for One Million Carbon Credits

What's the news#

In early September 2026, Mitti Labs, a Bengaluru‑based climate tech startup, announced a four‑year pact with Google to deliver one million tonnes of CO₂e removal credits. The agreement runs until the end of 2030 and is one of the largest single‑buyer commitments for an Indian agricultural carbon provider. Mitti Labs said the credits will come from regenerative practices such as cover cropping, reduced tillage and organic amendments that improve soil health and sequester carbon.

Details#

Mitti Labs collects field data using satellite imagery, drone flights and soil samples. Its algorithm estimates the amount of carbon stored per hectare, and an independent verifier issues the credits on a recognized registry. Under the Google deal, credits will be delivered in annual tranches, with the first tranche expected in 2027. Revenue from the deal will fund the expansion of Mitti Labs’ farmer outreach, aiming to bring a significantly larger number of smallholders into its network by 2029. Farmer payouts are processed through UPI, allowing near‑instant bank transfers.

India impact#

The partnership channels climate finance directly to rural households that often lack access to traditional funding. By tying credit revenue to UPI, Mitti Labs removes delays and reduces reliance on cash‑based intermediaries. The startup’s platform also links with a Flipkart‑style marketplace where farmers can buy seeds, bio‑fertilizers and equipment at discounted rates tied to verified carbon performance.

Improved connectivity from Jio’s 4G/5G network enables real‑time data uploads, cutting verification time from months to weeks. This scalability helps Mitti Labs monitor larger acreages without a proportional rise in field staff. Internal monitoring shows participating farms have observed notable yield improvements, contributing to both food security and India’s climate commitments.

Use cases#

While Google is the anchor buyer, Mitti Labs plans to offer the same credits to other corporations seeking to meet net‑zero targets, including Indian conglomerates, multinational firms with Indian operations and domestic airlines. The startup is also exploring a pooled‑credit subscription model that lets smaller businesses purchase offsets in smaller lots, similar to a SaaS offering.

On the technology front, Mitti Labs is testing blockchain‑based registries to improve traceability and prevent double counting. Early pilots with a permissioned ledger have shown faster reconciliation between buyers and sellers, a feature that could become a standard offering as the market matures.

Honest take#

The Mitti‑Google deal is a positive step toward scaling nature‑based solutions in India. A volume of one million tonnes is meaningful for a sector that accounts for a significant share of India’s greenhouse‑gas emissions. It demonstrates that corporate demand can drive adoption of regenerative practices at the farm level.

Nevertheless, challenges remain. Soil‑based carbon removal is still more expensive to verify than forestry credits, and ensuring the permanence of stored carbon requires long‑term farmer commitment beyond the initial contract period. Mitti Labs will need to show that the practices adopted today persist for at least a decade to avoid reversal risks.

From a business viewpoint, reliance on a single large buyer creates concentration risk. If Google’s demand shifts due to internal strategy changes or fluctuations in global carbon prices, Mitti Labs would need alternative revenue streams quickly. Diversifying the buyer base early will be key to the startup’s resilience.

Overall, the agreement highlights how India’s digital infrastructure — UPI, widespread smartphone use and strong satellite connectivity — can be leveraged to bring climate finance to grassroots producers. If the model proves scalable, it could serve as a blueprint for other emerging economies looking to align agricultural productivity with climate goals.

FAQs#

What type of carbon credits is Mitti Labs supplying to Google? The credits are nature‑based removal units generated from regenerative agriculture practices that increase soil organic carbon. How will farmers receive payment for the credits they help generate? Mitti Labs transfers the farmer’s share directly to their bank account using UPI, ensuring quick and transparent settlement. Does the agreement cover only Indian farmlands? Yes, the credits under this deal are sourced exclusively from projects located in India, primarily in the northern and western states. What is Google’s motivation for purchasing these credits? Google aims to offset a portion of its Scope 3 emissions as part of its broader 2030 net‑zero and carbon‑free energy objectives. Will Mitti Labs work with other buyers after the Google contract? The startup intends to offer similar credits to additional corporate and institutional buyers to reduce reliance on any single customer.