The Sustainability of Carbon Markets for Climate-Smart Agriculture among Smallholder Farmers in Uganda

Abstract

This study assesses the sustainability of Uganda's carbon markets in the context of climate-smart agricultural practices with the aim of aligning them with sustainable development goals. The research emphasizes integrating dimensions of sustainable development to proactively address food security and climate issues. Climate-smart agricultural practices that support the efficiency of small-scale farming enable farmers to generate income through the sale of carbon-related environmental services such as reduced greenhouse gas emissions and carbon sequestration. While these practices contribute to the resilience of smallholder farmers' livelihoods, challenges arise from large project volumes with low transaction costs, resulting in insufficient carbon revenues for local communities. Furthermore, limited methods and complex procedures hinder progress. The study recommends involving national or international organizations to bridge the gap between farmer groups and the carbon market, with a focus on government policy and private sector collaboration to incentivize environmental services. In summary, establishing sustainable, climate-smart agricultural links to the carbon market can bring co-benefits including income diversification, poverty reduction and biodiversity conservation.