Insight

Fast Tracks and Green Gaps Part V : 
From Carrots to Carbon Credits

Lorelei Graham
September 22, 2025
Fast Tracks and Green Gaps Part V: From Carrots to Carbon Credits: How the World is Powering Green Agri-Tech Beyond IP
Authors
Lorelei GrahamPartner

It is clear that the global push for green innovation is no longer just aspirational, it is structural. Over the past decade, countries around the world have implemented a mosaic of policies to accelerate environmentally friendly technologies, many of which intersect with intellectual property. But intellectual property (IP) is just one piece of a much larger innovation puzzle.

Increasingly, we see that financial incentives, regulatory frameworks and IP protections are working in tandem to drive green agri-tech. Incentives can include tax credits, substantial grants supporting climate-smart agriculture, subsidies for carbon farming, or “patent box” regimes offering reduced tax rates on income from green IP, all of which then shape the behavior of startups and researchers alike. However increasingly the conversation is expanding beyond patents and grants into including carbon markets.

Positive Trends in Agri-Tech

Carbon credits are emerging as a powerful complement to traditional IP and financial incentives making them the new currency for agri-tech innovation. For agri-tech startups focused on carbon capture, whether through regenerative farming, biochar or soil sequestration, carbon credits offer a direct revenue stream tied to environmental performance. These credits can be sold on voluntary or compliance markets, providing a financial incentive to scale sustainable practices. Companies are also starting to pioneer the use of carbon insets, which are emission reductions within their own supply chains, as a more integrated alternative to traditional carbon offsets, which often involve external projects. Insetting aligns sustainability goals with core operations, making it particularly relevant for agri-food companies aiming to reduce their emissions. This approach underscores how carbon strategies are becoming embedded in agri-tech innovation, not just adjacent to it. For startups, this means that a novel carbon-capturing device or soil-enhancing microbial treatment is not just a patentable invention, it is also a potential generator of carbon credits. A dual strategy that combines IP protection with carbon market participation can unlock both investment and impact.

Another noteworthy trend, especially in the climate arena, is an emphasis on collaboration over competition for the greater good. While patents grant legal rights, many innovators are choosing to share green technologies through collaborative licensing, patent pools or platforms like WIPO GREEN. This approach allows agri-tech startups to license critical technologies or contribute their own, accelerating deployment and impact. Universities and public research institutions often lead the way, patenting drought-resistant crops, for example, but licensing them affordably to ensure global access. Governments are also encouraging this model, with some requiring publicly funded innovations to include dissemination strategies that balance protection with accessibility.

Finally, climate technology is evolving fast, and so are the policies that support it. The United States Patent and Trademark Office (USPTO)'s recent shift in green tech prioritization reflects a broader trend of re-evaluation. Canada may adjust its own programs in response to shifting demand. Globally, equity remains a concern, ensuring that developing countries can access and benefit from green innovations. This could spark future discussions at the World Trade Organization or World Intellectual Property Organization around IP flexibilities for climate-critical technologies, much like the debates around COVID-19 vaccine access. For agri-tech companies, staying attuned to these shifts is essential. A flexible IP strategy, one that can seize incentives when available and pivot when policies change, will be crucial in the years ahead.

Looking Ahead

Innovation in climate-resilient agriculture is not just about brilliant science and engineering; it is also about navigating the landscape of intellectual property to maximize impact. Canada’s experience shows how a supportive IP strategy (like fast-track green patents and broad innovation incentives) can foster a healthy pipeline of climate-focused agri-tech solutions. The United States’ recent policy reversal on its green patent program has highlighted the differences in approach, prompting stakeholders to think globally and creatively about how to protect and disseminate green innovations. Meanwhile, the European Union (EU), through both its collective policies and individual member states, underscores a balanced approach, encourages innovation, protects it, when necessary, but also collaborates and shares knowledge to address the climate challenge.

For agri-tech startups and researchers, the key takeaway is that IP strategy is a tool for innovation, not an obstacle. By understanding the incentives and programs available and how they differ across Canada, the United States and the EU, innovators can better plan where and how to patent their technologies. Policymakers, for their part, will continue to refine the balance, offering carrots like accelerated examination or tax benefits, and occasionally rethinking policies to serve the greater good.

In the end, all these efforts are aimed at the same goal, to accelerate the development and adoption of technologies that can sustain agriculture in the face of climate change. By making intellectual property regimes more attuned to the urgency of the climate crisis, we create an environment in which agri-tech innovation can flourish. Farmers, businesses and the planet stand to benefit from that innovation. As we move forward, it will be fascinating to watch how Canada, the United States, the EU and others learn from each other’s successes and missteps. The hope is that through smart IP policies and international cooperation, climate-resilient agri-tech will thrive delivering solutions that not only are inventively brilliant but also widely accessible for the benefit of all.

Part I of Fast Tracks and Green Gaps looks at Planting the Future: Why Canada’s IP System May Be the Climate Innovation Sleeper Hit.

Part II of Fast Tracks and Green Gaps looks at Innovation Interrupted: What the End of the USPTO’s Green Program Means for Agri-Tech.

Part III of Fast Tracks and Green Gaps looks at Green Without the Label: Europe’s Pragmatic IP Approach to Agri-Tech Innovation.

Part IV of Fast Tracks and Green Gaps looks at Shifting Gears: How the United States' Exit from Climate Protection Fuels Canada's IP Advantage.

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For informational purposes only

This publication provides an overview of legal trends and updates for informational purposes only. For personalized legal advice, please contact the authors.

Authors

Lorelei Graham, Partner  •   Head of Agribusiness Industry Team
Toronto  •   416.777.6547  •   grahaml@bennettjones.com