Hybrid incentives for mitigating agricultural emissions in South Africa: Evidence-based strategies for reconciling environmental and economic sustainability

Sustainable agricultural practices offer significant mitigation potential, yet their impact is constrained by systemic exclusion from carbon pricing due to measurement, reporting, and verification (MRV) barriers. This study synthesizes evidence from market-based and non-market strategies to propose a hybrid framework that addresses MRV capacity gaps while promoting smallholder inclusivity. Employing thematic analysis of 65 studies (2001–2025) and case studies from Kenya, Ethiopia, and Mexico, the study identifies a structural tension. Results show that market mechanisms offer scalable finance but exclude agriculture because of high transaction costs and Tier 3 verification requirements. Non-market interventions, however, achieve documented reductions (13.34 MtCO 2 e) through Conservation Agriculture but lack financial sustainability and broader adoption. To overcome these limitations, the study proposes the Hybrid Incentives Distribution Framework, featuring a “Receive-As-You-Earn” (RAYE) mechanism. This model conditions government support (fiscal transfers, technical extension, infrastructure) on advancing MRV capacity from Tier 1 to Tier 3, thereby creating a bridge to formal carbon markets. This sequenced approach reconciles verification rigor with accessibility, unlocking South Africa's 6.34% sectoral mitigation potential through combined land-based sequestration (4.90%) and technological decarbonization (1.44%). The framework provides an evidence-based pathway to align agricultural climate action with national targets while securing vital rural livelihood co-benefits.