Google Secures Major Rice-Methane Carbon Credit Partnership with Indian Innovator Mitti Labs
Google has announced plans to acquire 1 million carbon credits from Indian climate-tech startup Mitti Labs by 2030, marking the largest publicly disclosed deal for credits generated from reducing methane emissions in rice farming.
This four-year agreement focuses on rice farms in the Indian states of Karnataka, Andhra Pradesh, and Telangana. It aims to cover approximately 100,000 hectares at peak delivery, according to Mitti Labs co-founder Xavier Laguarta. The financial details of the arrangement have not been revealed.
Under this initiative, farmers will receive compensation for adopting methods that minimize the duration rice fields remain flooded. This approach not only lowers methane emissions during cultivation but also decreases water usage. Mitti Labs asserts that this technique can reduce methane emissions by roughly 50% and irrigation water use by about 40%, all without impacting crop yields.
This agreement comes as Google strives to meet its target of achieving net-zero emissions by 2030, even while heavily investing in artificial intelligence infrastructure. According to its latest environmental report, the company saw its greenhouse gas emissions rise by 18% year-over-year in 2025, totaling around 14.5 million metric tons of carbon dioxide equivalent.
Laguarta shared that discussions with Google began about a year ago, as the tech giant sought to enhance its carbon credit portfolio with methane-reduction initiatives. Google’s interest was partly driven by the project’s potential for water conservation and Mitti Labs’ scalable approach.
Over the past two years, Mitti Labs has helped save more than 500 billion liters of water. The partnership with Google will enable Mitti Labs to further expand, enhancing its capacity to collaborate with larger corporate clients.
“Having Google, one of the most discerning buyers in the market known for its thorough vetting processes, is a significant endorsement for us,” stated Laguarta, emphasizing that this arrangement would enable Mitti to expand substantially.
Before finalizing the agreement, Google conducted an in-depth evaluation of Mitti Labs’ monitoring technology, including visits to their farms, according to Laguarta. Established in 2023, Mitti Labs operates out of New York and Bengaluru and has developed a GeoAI platform that leverages satellite radar data alongside field measurements to remotely monitor crop growth, soil moisture, and water levels across smallholder farms.
The GeoAI platform utilizes synthetic aperture radar data from commercial and public satellites, with resolutions varying from 50 centimeters to 10 meters. Additionally, Mitti incorporates unique data gathered in the fields to refine its AI models, according to Laguarta.
The carbon credits sold to Google can be verified under either Gold Standard or Isometric, two recognized carbon-credit certification organizations. There is also an independent third-party verification process involved in the certification before credits are issued.
Besides engaging with Google, Mitti Labs is collaborating with other clients, including carbon marketplace Cool Effect, rice producer Ebro Foods, and agricultural firm Syngenta. Laguarta noted that the deal with Google stands as Mitti Labs’ largest offtake agreement so far.
Currently, Mitti Labs collaborates with over 100,000 farmers and aims to expand its outreach to millions by 2030. This partnership with Google is expected to facilitate that growth by allowing larger project initiatives.
Laguarta highlighted that a significant portion of the revenue generated from their projects is directed back to farming communities. However, he did not disclose how much participating farmers in the Google initiative would receive.
While the current project is limited to India, Mitti Labs is planning to begin operations in the Philippines later this year and is looking to expand into Indonesia and other Southeast Asian countries by 2027.
Laguarta sees substantial growth potential as more companies turn to agricultural projects to combat methane emissions. He mentioned that approximately 150 million farmers cultivate rice across India, Southeast Asia, and China.
This partnership with Mitti Labs is not Google’s initial foray into carbon removal investments in India. In January 2025, the tech giant entered into an agreement with Varaha, a Gurugram-based company, to purchase 100,000 tons of carbon credits, marking its first significant acquisition of carbon removal credits in the country, particularly involving biomass-derived biochar.
In addition, Google is pursuing clean energy initiatives in India to manage supply-chain emissions. It has recently signed an agreement related to a 150-megawatt solar project in Rajasthan, increasing its total contracted solar capacity in the region to 300 megawatts.
