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

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Learning Event No 2, Session 1, ARDD 2011: What role for carbon finance in climate smart small-holder agriculture?

  • 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)

Editor's Notes

  1. Landscape level, co-benefit