First community carbon credits unlock conservation cash

From the newsletter

Private carbon buyers have for the first time paid communities to restore degraded land at scale and under high-integrity standards. A community-focused grassland restoration project in South Africa issued the world’s first Climate, Community and Biodiversity (CCB) carbon credits, marking a milestone for conservation finance.

• The issuance of 266,255 verified carbon units by Tasc, a carbon project developer on January 23rd followed closely after Rubicon Carbon signed a nine-year agreement to supply Microsoft with two million tonnes of carbon credits from trees planted on degraded farmland in Uganda.

• Low and unstable rural incomes across Africa are a major barrier to effective conservation. In both projects, carbon finance is channelled directly to smallholder farmers, turning degraded land into income-generating conservation assets.

More details

• The Grassland Restoration and Stewardship project covers 95,000 hectares of communal rangeland and involved 4,000 farmers during its first monitoring period. The project also operates on 352,218 hectares of private farmland, with an overall target of one million hectares under improved land management by 2027.

• The initiative has provided smallholder farmers with access to livestock markets and related training through a partnership with Meat Naturally Africa. Farmers participating in the project have sold wool and livestock via mobile auctions and abattoirs, generating about $3.35 million in additional revenue.

• The project is structured around a 100-year commitment, with projected annual carbon sequestration or avoided emissions exceeding 380,000 tonnes of carbon dioxide equivalent. Over the first 30 years, the initiative is expected to mitigate 14 million tonnes of carbon dioxide equivalent. 

• Earlier in the month, Uganda launched a similar initiative. Rubicon Carbon signed a nine-year agreement with Microsoft to supply carbon credits from the Smallholder Farmer Forestry Project, which engages tens of thousands of farmers planting fast-growing trees on underused farmland. The project supports approximately 50,000 farmers.

• These projects show how carbon finance can support conservation in landscapes where limited and unstable rural incomes have historically hindered effective ecosystem management. Verified credits tied to corporate offtake agreements provide predictable funding for restoration activities. 

Our take

• Corporate offtake agreements provide communities with a steady and predictable source of conservation funding. 

• Predictable funding allows communities to invest in long-term environmental stewardship and reduce pressures like encroachment.