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Smallholder Farmers and the Voluntary Carbon Market: New Report Highlights Challenges and Opportunities

Smallholder Farmers and the Voluntary Carbon Market: A Balancing Act

The Fair & Smart Data Spearhead of Maastricht University has published a comprehensive report titled Smallholder Farmers and the Voluntary Carbon Market: A Balancing Act, shedding light on the role of smallholder farmers in the voluntary carbon market (VCM). A team of researchers from different schools and departments of Maastricht University collaborated on this report: UNU-MERIT, Maastricht School of Management, and the School of Business and Economics. The report examines the role of smallholder farmers in mitigating climate change through projects like agroforestry and forest conservation while exploring the monetary and non-monetary benefits they derive from participation.

Smallholder Participation in the Voluntary Carbon Market

The study analyses two case studies: a coffee agroforestry project in Nicaragua and a conservation project involving Quilombola communities in Brazil. Both projects highlight innovative approaches to integrating smallholder farmers into the VCM, addressing issues like carbon sequestration, land-use sustainability, and global value chain governance. The report emphasises the potential dual impact of the VCM in delivering climate benefits while fostering economic resilience among smallholders.
 

Key findings reveal that while the VCM offers new income streams and encourages climate-smart agricultural practices, barriers such as certification costs, governance challenges, and delayed payments remain significant hurdles for smallholder participation. The report concludes with actionable recommendations for optimising VCM governance to ensure equitable benefit distribution for farmers.
 

This timely publication contributes valuable insights into the growing global conversation on sustainable development and climate action through market-based mechanisms.

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