What role for carbon finance in climate smart small-holder agriculture? Presentation by Agnes Otzelberger

1. What role for carbon finance in
climate smart small-holder agriculture
Agnes Otzelberger

2. Evidence of impact
1. More than 2500 farmers adopted agroforestry practices without
any mention of cash incentives – institutional, cultural, tenural
barriers are key.
2. Small-holder ag. carbon projects funded from carbon markets
not financially viable without substantial grant funding – gross
carbon revenue (i.e. before covering project costs) averages
$10/farmer/year over 25 years
3. Increased uptake of agroforestry practices through efforts to
demonstrate benefits to farmers in a practical approach
(farmer-to-farmer learning) starting with a conservative risk
taking approach and increasing the investment as farmers
discover the benefits

3. Going to scale
1. Change the approach to mitigation in small-holder
agriculture policy and practice – from mitigation-
centric projects to programs focused on more
productive, climate-change resilient agriculture that
achieves mitigation as a co-benefit.
2. Rebuild functional extension services to provide
necessary support and training for smallholder
farmers
3. Ensure policies / agriculture & climate financing
mechanisms that are accessible to and support
smallholder agriculture (incl. reducing the cost of
monitoring mitigation as a co-benefit; participatory
carbon models)