Executive Summary
Rural communities across developing regions face declining agricultural productivity, soil degradation, deforestation, and increasing vulnerability to climate change. Smallholder farmers, who produce a significant portion of global food supplies, are disproportionately affected by erratic rainfall, rising temperatures, and land degradation. At the same time, global demand for climate mitigation solutions and carbon offset markets presents new opportunities for rural income diversification.
This project, Carbon Farming and Agroforestry for Rural Income Generation, seeks to enhance rural livelihoods while contributing to climate mitigation and ecosystem restoration. The initiative promotes agroforestry systems and carbon farming practices that improve soil health, increase crop productivity, restore degraded landscapes, and enable smallholder farmers to access voluntary carbon markets.
Over a five-year period, the project will support 10,000 smallholder farmers across selected rural districts. It will establish sustainable agroforestry systems on 25,000 hectares of land, sequester significant amounts of carbon, improve biodiversity, and generate new income streams through carbon credit mechanisms and diversified agricultural production.
The project aligns with:
- SDG 1 (No Poverty)
- SDG 2 (Zero Hunger)
- SDG 13 (Climate Action)
- SDG 15 (Life on Land)
- Paris Agreement commitments and Nationally Determined Contributions (NDCs)
Background and Rationale
- Climate Change and Rural Vulnerability
- Agricultural systems are both contributors to and victims of climate change. Deforestation, unsustainable farming practices, and land degradation increase greenhouse gas emissions. Meanwhile, smallholder farmers face declining yields due to soil erosion, nutrient depletion, and extreme weather events.
- Many rural households depend on monocropping systems that provide limited resilience and low economic returns. This increases vulnerability to shocks such as droughts or floods and contributes to poverty cycles.
- Opportunity in Carbon Markets
- The global voluntary carbon market has expanded rapidly as corporations and governments commit to net-zero targets. Carbon sequestration through tree planting, agroforestry, soil carbon enhancement, and regenerative agriculture is increasingly recognized as a cost-effective climate mitigation strategy.
- Agroforestry as a Dual Solution
- Agroforestry integrates trees into farming systems, delivering multiple benefits:
- Improved soil fertility
- Increased biodiversity
- Diversified income (timber, fruits, nuts, medicinal plants)
- Enhanced carbon sequestration
- Reduced erosion and improved water retention
- Agroforestry integrates trees into farming systems, delivering multiple benefits:
Project Goal and Objectives
Overall Goal
To increase rural incomes and climate resilience through the adoption of carbon farming and agroforestry systems.
Specific Objectives
- Establish climate-smart agroforestry systems on 25,000 hectares of farmland.
- Enable smallholder farmers to participate in voluntary carbon markets.
- Improve soil health and agricultural productivity.
- Strengthen farmer cooperatives and value chain linkages.
- Promote gender-inclusive and youth-inclusive green livelihoods.
Target Beneficiaries
Primary Beneficiaries:
- 10,000 smallholder farmers
- Women farmers (at least 50% participation target)
- Rural youth
- Farmer cooperatives
Secondary Beneficiaries:
- Local communities benefiting from restored ecosystems
- Agricultural extension services
- Carbon credit buyers and climate-focused investors
Project Components and Activities
- Component 1: Baseline Assessment and Land Mapping
- Activities:
- Soil carbon baseline assessments
- Land suitability mapping
- Socio-economic surveys
- Identification of high-potential agroforestry zones
- Outputs:
- Carbon baseline report
- GIS-based land registry
- Farmer database
- Activities:
- Component 2: Agroforestry System Establishment
- Outputs:
- 25,000 hectares under agroforestry
- Improved soil organic carbon levels
- Increased crop productivity
- Component 3: Carbon Certification and Market Access
- Activities:
- Development of Monitoring, Reporting, and Verification (MRV) systems
- Registration under recognized carbon standards
- Formation of carbon aggregation cooperatives
- Negotiation with carbon buyers
- Outputs:
- Verified carbon credits generated
- Farmers receiving carbon payments
- Transparent carbon revenue-sharing system
- Activities:
- Component 4: Capacity Building and Cooperative Strengthening
- Activities:
- Financial literacy training
- Cooperative management workshops
- Governance and transparency training
- Digital record-keeping systems
- Outputs:
- Strengthened farmer cooperatives
- Increased bargaining power
- Improved access to markets
- Activities:
- Component 5: Value Chain Development
- Outputs:
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- Diversified rural income sources
- Reduced post-harvest losses
- Increased profitability
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- Component 6: Gender and Youth Inclusion
- Activities:
- Women-led agroforestry enterprises
- Youth green entrepreneurship training
- Access to startup grants
- Leadership development programs
- Outputs:
- Increased women’s land-use decision-making power
- Youth employment in green sectors
- Activities:
Implementation Strategy
- Phase 1: Preparation (Months 1–6)
- Baseline assessments
- Stakeholder engagement
- Community mobilization
- Phase 2: System Establishment (Months 7–30)
- Seedling distribution
- Farmer training
- Agroforestry expansion
- Phase 3: Carbon Registration & Revenue Generation (Months 18–48)
- MRV system operationalization
- Carbon credit issuance
- Revenue distribution
- Phase 4: Consolidation & Scaling (Months 49–60)
- Impact evaluation
- Policy engagement
- Expansion strategy
Expected Outcomes
- 25,000 hectares restored through agroforestry.
- 10,000 farmers generating additional income from carbon credits.
- Increased agricultural productivity by 20–30%.
- Improved soil organic carbon content.
- Strengthened climate resilience of rural communities.
Monitoring and Evaluation
Key Indicators:
- Hectares under agroforestry
- Tonnes of CO₂ equivalent sequestered
- Average increase in farmer income
- Percentage of women beneficiaries
- Soil organic carbon levels
Data Collection Methods:
- Remote sensing
- Field surveys
- Soil testing
- Financial monitoring records
- Carbon registry reports
Annual independent audits will verify carbon accounting.
Sustainability Strategy
- Carbon revenue reinvestment funds
- Community-managed nurseries
- Long-term carbon contracts
- Government policy integration
- Partnerships with private sector climate investors
The project promotes financial sustainability through carbon payments and diversified agricultural outputs.
Conclusion
Carbon farming and agroforestry represent a transformative opportunity for rural development. By aligning climate mitigation goals with livelihood improvement, this project provides a triple win: environmental restoration, climate action, and poverty reduction.
Through technical support, cooperative strengthening, carbon market integration, and inclusive participation, rural communities can transition from vulnerability to resilience while contributing meaningfully to global climate solutions.
