A Review of the Participation of Smallholder Farmers in Land-based Carbon Payment Schemes

Abstract

Carbon credit certification standards stipulate local community participation in the project cycle, but evidence and guidelines for effective smallholder participation are not harmonised and vary across standards. Projects that strengthen social capital can stimulate participation among the marginalized, reduce transaction costs, and promote equity and smallholder agency. The main incentives for farmers participation in carbon payments schmes are non-monetary, these include: improved yields, access to financial advisory services and credit, investments in local infrastructure and the development of income-generating activities. Flexibility in project design, including local contract providers and low-cost soil conservation measures, can stimulate participation among marginalized smallholders such as the landless, youth, and women. Designing and implementing rigorous, participatory, and cost-effective Monitoring Reporting and Verification (MRV) methodologies remains a challenge for many project proponents