Google Inks Landmark Rice-Methane Carbon Credit Deal with Indian Startup Mitti Labs

Google has signed its biggest publicly announced carbon credit deal focused on rice-farming methane reduction with Indian startup Mitti Labs, agreeing to purchase 1 million credits through 2030.

The four-year agreement will cover rice farms across the Indian states of Karnataka, Andhra Pradesh, and Telangana, reaching about 100,000 hectares at peak delivery, according to Mitti Labs co-founder Xavier Laguarta, who spoke with TechCrunch. Financial terms were not disclosed.

The project pays farmers to adopt practices that reduce how long rice fields remain flooded, cutting methane released during cultivation while also reducing water use. Mitti Labs says the technique can cut methane emissions by about 50% and irrigation water use by about 40% without reducing crop yields.

The deal comes as Google faces the challenge of reaching its goal of going net-zero emissions by 2030 amid heavy investment in artificial-intelligence infrastructure. Its greenhouse gas emissions in 2025 grew 18% year-over-year to about 14.5 million metric tons of carbon dioxide equivalent, according to its environmental report released in June.

Mitti Labs began talks with Google about a year ago, Laguarta said, as the tech company explored adding methane-reduction projects to its carbon-credit portfolio. Google was drawn in part to the project's water savings and Mitti Labs' ability to operate at scale. The startup's projects have saved more than 500 billion liters of water over the past two years.

The deal, Laguarta said, would allow Mitti Labs to expand further, giving it the scale needed to work with large corporate buyers.

Why This Matters

This represents a significant scale-up in corporate carbon credit procurement for agricultural methane reduction, which could set a precedent for other large buyers.
For readers, it highlights the growing intersection of AI-driven tech company growth and climate commitments — Google's rising emissions from AI infrastructure are driving demand for offset projects.
The water savings component addresses critical water scarcity issues in Indian agriculture, offering co-benefits beyond carbon reduction.

Background

Carbon credits allow companies to offset their emissions by funding projects that reduce or capture greenhouse gases elsewhere. Methane from rice paddies is a potent but often overlooked source — flooded fields create anaerobic conditions that cause soil bacteria to release methane. Altering water management, such as through alternate wetting and drying (AWD), can significantly cut these emissions while also saving water. Google has been expanding its carbon credit portfolio as part of its net-zero by 2030 target, though its overall emissions have continued to rise.

Key Perspectives

Google: The deal supports its net-zero goal amid rising emissions from AI infrastructure, offering a scalable offset with co-benefits in water conservation. Mitti Labs: The agreement provides the revenue certainty to expand operations and attract other large corporate buyers, building on proven water savings. Critics/Skeptics: Carbon credit markets have faced scrutiny over additionality and permanence concerns — whether offsets truly represent emissions that would not have been avoided otherwise. The effectiveness and verification of methane reductions in smallholder rice farming will be key to the deal's credibility.

What to Watch

Verification reports on actual methane reductions achieved through Mitti Labs' methods.
Whether Google announces additional similar deals as its AI emissions continue to grow.
Any regulatory or market-standard developments around rice-methane credits as the sector matures.

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