In the global effort to tackle climate change, smallholder farmers across the Asia-Pacific (APAC) region find themselves in a key position. These farmers, typically working on plots smaller than two hectares, are spread across countries like India, Indonesia, Vietnam, and the Philippines. They grow a significant share of the region’s food and face some of the harshest impacts from a changing climate. But here’s the thing: they’re also one of the most overlooked resources in our climate response. With the right tools and support, smallholders could be a powerful part of the solution, contributing to both emission reduction and climate resilience.
Why Smallholders Matter
Let’s start with scale. Around 85 percent of the world’s smallholder farmers live in APAC. In India alone, more than 126 million smallholders manage over 40 percent of the country’s farmland. In Southeast Asia, they grow high-emission crops like rice and palm oil. Rice farming, for example, is responsible for up to 10 percent of global methane emissions due to the way paddy fields are typically flooded. Add to that the overuse of synthetic fertilizers, which release nitrous oxide, and practices like crop burning, and the emissions really add up.
At the same time, these farmers are on the frontlines of climate impacts. Droughts, floods, and erratic weather patterns are already cutting into yields. Many smallholders don’t have access to irrigation, insurance, or even accurate weather forecasts. So while they contribute to emissions, they’re also among the most exposed to climate risks. That’s why any serious climate strategy for APAC has to include them.
Climate-Smart Solutions That Work
The good news? Solutions already exist—and some are surprisingly simple. Take Alternate Wetting and Drying (AWD) for rice. Instead of keeping fields continuously flooded, AWD involves strategic drainage, which can cut methane emissions by as much as 50 percent. In Vietnam’s Mekong Delta, AWD has already shown a 30 percent reduction in methane emissions across hundreds of thousands of hectares.
Another approach involves switching to organic and biofertilizers. Compost, seaweed-based products, and microbial solutions can reduce nitrous oxide emissions and improve soil health. Startups like RizeAg in India are making these inputs more accessible while linking farmers to carbon markets. And then there’s tech. Platforms like CropIn provide AI-driven tools that help farmers make smarter decisions about when and how to use water, fertilizers, and pesticides. This not only cuts emissions but often boosts yields too.
Agroforestry is also gaining traction. By planting trees alongside crops, farmers can increase biodiversity, protect the soil, and store carbon. In Indonesia and the Philippines, these practices are part of long-standing farming traditions. On average, agroforestry systems can sequester between 1.1 and 2.6 tonnes of carbon per hectare each year.
Financing the Transition
Shifting to these practices isn’t free, which is where finance comes in. Many climate-smart methods used by smallholders—like AWD or agroforestry—can generate carbon credits. But small farmers often struggle to access these markets. Verification costs are high, and it’s hard to organize projects at the scale needed for credit buyers.
Some startups are working to fix that. Boomitra, for example, uses satellite data to make monitoring and reporting more affordable. Orbicle Bio in South Korea offers microbial fertilizers that come with built-in tracking for carbon savings. These tools help farmers join carbon markets without the usual administrative hurdles.
Governments and development funds are also stepping up. India’s PM-KUSUM scheme supports solar irrigation, which reduces reliance on diesel pumps. The Green Climate Fund backs climate-smart agriculture in countries like Bangladesh and Fiji. And the Asian Development Bank has pledged $10 billion through 2030 to help expand sustainable farming across APAC.
Startups Bridging the Gap
On the ground, climate tech startups across Asia are connecting the dots. RizeAg bundles biofertilizers with advisory services and carbon credit support. In Indonesia, Vega develops plant-based biostimulants and uses remote sensing to guide application. FarmERP offers digital platforms for cooperatives to track and manage sustainable practices. CarbonFarm and Koltiva are making it easier for farmers to prove their climate impact through traceability and verification tools tailored to small farms.
Barriers and Policy Gaps
Of course, it’s not all smooth sailing. Small land sizes and scattered plots make it hard to scale machinery and data systems. Many farmers, especially women and older workers, still don’t have access to mobile banking or digital tools. Carbon markets can be volatile, and current subsidies often still encourage heavy fertilizer use.
To shift the system, governments need to rethink policy. Carbon registries should support small, decentralized farming methods. Public extension services need to bring in digital tools and locally relevant climate training. Financial systems must offer products like microloans and weather-based insurance that actually meet farmers’ needs.
Looking Ahead
There’s momentum building. ASEAN’s Climate Resilience Framework is pushing for region-wide adaptation investments. Countries like Vietnam, India, and Indonesia are developing carbon registries with agriculture in mind. But scaling these solutions will take coordination between startups, governments, investors, and communities.
Smallholder farmers aren’t just recipients of support. They are skilled, adaptive land stewards who know their fields better than anyone. With the right tools, fair financing, and strong policy backing, they can help turn agriculture from a climate problem into a climate solution.