Potential Benefits Of Carbon Trade As An Economic Incentives For Emission Reduction: A Case Of Community Based Forest Management In Kilwa District, Tanzania

ABSTRACT

This study was conducted with the overall objective of analyzing the role of carbon trading towards forest conservation to reduce emission through Sustainable Forest Management (SFM) under Community Based Forest Management (CBFM). The study was conducted in Kilwa district where REDD pilot project is being implemented by Mpingo Conservation Development Initiatives (MCDI), and where also most baseline information is available. Both socio-economic and ecological data were collected. Household questionnaires were administered to 120 households, and Participatory Rural Approach were used to collect the primary data for the study. Sample villages included those who were under REDD (40), those who were not under REDD (40) and those practicing Participatory Forest Management (PFM) only (40). The ecological data included the carbon stocks in forests managed under the three categories. Data were analyzed using both SPSS software and Microsoft Excel. A binary Logit regression analysis was used to analyses the factors/incentives influencing local participation in REDD+ activities. Participation in REDD+/CBFM and forest management activities was found to increase significantly with increase in benefits and incentives for forest management, especially the potentials for future carbon trading It was found that there is an expected net income averaging to more than TZS 410 891 27 147, and TZS 195 007 per household from the sales of carbon in Liwiti, Migeregere and Mchakama villages respectively if they sale their carbon under REDD+ activities. This can further be invested to expand CBFM for sustainable timber harvest as the goal of MCDI project. In addition more revenues, amounting to TZS 2 mill from the sales of other forest products is expected, if the community will be allowed to sale other products from the forests under REDD+ mechanisms, giving better logical incentive package for the community to participation in forest management. In general, there was increased access to livelihood assets within the community especially financial, natural, physical, and human assets, iii attributed to CBFM project both at household and community levels. However, from the distribution point of view, producers (villagers) get low income from the sales of other forest products compared to other actors in the value chain of these products. Nevertheless, villagers gain more additional income from sustainable timber harvests that can be expanded as a result of the money obtained from the sales of carbon credits. It is therefore, plausible to conclude that REDD+/CBFM have positive effects on the livelihoods of the adjacent communities and it is therefore, recommended that the communities should be sensitized to participate in REDD+/CBFM activities for improved livelihoods and reduced emissions from deforestation and forest degradation.