Google Buys 1 Million Mitti Labs Rice Methane Credits in Record India Deal
Google will buy 1 million Mitti Labs rice methane credits through 2030, backing Indian farms that can halve emissions and cut irrigation water use 40%.
Summary
On September 10, 2026, Google agreed to buy 1 million carbon credits from Mitti Labs through 2030 under a four year contract, billed as the largest publicly announced purchase tied to methane cuts in rice farming. At peak, farms across Karnataka, Andhra Pradesh and Telangana will cover about 100,000 hectares. Farmers will be paid to shorten flooding, which Mitti says can cut methane about 50% and irrigation water about 40% without lowering yields. Financial terms and farmer payments are undisclosed, although most project revenue goes to farming communities.
Founded in 2023 in New York and Bengaluru, Mitti’s GeoAI combines field measurements and proprietary data with synthetic aperture radar from public and commercial satellites, at 50 centimeters to 10 meters resolution, to monitor smallholder crop growth, soil moisture and flooding. Google began talks about a year ago, reviewed the technology and visited farms, citing water savings and scale. Gold Standard or Isometric can issue credits after independent verification. Mitti saved more than 500 billion liters in two years and serves over 100,000 farmers; customers include Cool Effect, Ebro Foods and Syngenta, with millions of farmers targeted by 2030.
Mitti’s largest offtake will support launches in the Philippines later in 2026, then Indonesia and other Southeast Asian markets in 2027; about 150 million farmers grow rice across India, Southeast Asia and China. The purchase comes as AI infrastructure complicates Google’s 2030 net zero goal: its June environmental report showed 2025 emissions rose 18% to about 14.5 million metric tons of carbon dioxide equivalent. In January 2025, Google bought 100,000 tons of Indian removal credits from Gurugram based Varaha, its first large scale purchase there and the largest biomass biochar deal. A 150 megawatt Rajasthan solar project also raises Google’s contracted capacity with ReNew to 300 megawatts.
Positives
- 1 million credits through 2030 make this the largest publicly announced rice methane reduction deal.
- Methane emissions could fall about 50% while irrigation water use drops about 40%, without reducing rice yields.
- More than 500 billion liters of water have already been saved by Mitti Labs projects over two years.
- Over 100,000 farmers currently work with Mitti Labs, which aims to reach millions by 2030.
- Independent verification and certification through Gold Standard or Isometric add scrutiny before credits are issued.
Risks & concerns
- Google’s 2025 emissions rose 18% to about 14.5 million metric tons as AI investment complicated its 2030 net zero target.
- Financial terms and the payments individual farmers will receive from the Google project remain undisclosed.
- The claimed 50% methane and 40% water reductions must still be independently verified before credits are issued.
- The Google project remains limited to India, with Philippines and Indonesia operations not beginning until 2026 and 2027, respectively.