Forest Carbon and Poverty Reduction: Project motivations, methods and the market

Although poverty reduction is increasingly becoming a component of developing world forest carbon projects, little current research examines the steps taken to support the livelihoods of communities near the projects. This paper seeks to gauge the extent to which poverty reduction represents a goal of forest carbon project developers, and determine the types of programs being implemented to this end. It aims quantify the project expenditures toward poverty reduction, and their relationship with organization type, project type and motivation, sources of funding, poverty reduction activities and certification. Finally it discusses the impact of poverty reduction on risk and credit demand via certification. Based on results from a cross-sectional survey, poverty reduction appears to be a widespread aim of developing world forest carbon project developers, and significant portions of project budgets are being dedicated to this end, although these differ based on numerous variables. Also, poverty reduction is seen as a way of reducing project risk, and a way of increasing marketability of credits. (author)