Potential of Carbon Markets for Small-Scale African Farmers
The carbon market initiative aims to enhance income for small-scale African farmers through agroforestry by monetizing carbon credits. FSD is driving this project, targeting over 70% revenue retention for farmers as market demand for carbon credits grows.
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FSD is leading a project to integrate small-scale African farmers into carbon markets, allowing them to sell carbon credits generated from agroforestry. Currently, carbon credits are priced between $20 and $25 per ton in voluntary markets, with plans to shift to an auction-based pricing model to maximize earnings for farmers.
The initiative is tied to the Sustainable Development Goals, focusing on economic empowerment and environmental conservation. As demand for carbon credits rises, farmers could see increased financial benefits, highlighting the potential of sustainable agriculture to create new revenue streams.
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