Trade-offs between carbon sequestration and rural incomes in the N’hambita Community Carbon Project, Mozambique

This paper presents a preliminary assessment of trade-offs between carbon sequestration and farmers’ incomes from land-use systems implemented in a community-based project, in Mozambique. Systems either focus on carbon sequestration or combine sequestration with cash crop cultivation. The latter provide carbon payments with potential income from cash crop sales. Uncertainty about the future costs and benefits of maintaining and utilizing the land-use systems over time is addressed via application of Monte Carlo simulations. Our results show that compared with sequestration-only systems those that combine sequestration and cash crop production have higher net benefits, although they have less carbon-sequestration potential. Homestead planting provides the most attractive balance among competing policy goals. Carbon payments contribute to cash income and may enable smallholders to overcome initial project investment costs.

► Land-uses combining carbon sequestration and cash crops have higher net benefits.
► Combining carbon and cash crops leads to less carbon sequestration.
► Homestead planting has the most attractive balance among competing policy goals.
► Carbon payments may enable farmers to overcome initial project investment costs.
► Estimates of costs and benefits are subject to uncertainty.