Linking Smallholder Coffee Farmers in Tanzania to the Carbon Credit Market

Date:21 March 2024

Linking Smallholder Coffee Farmers in Tanzania to the Carbon Credit Market

Carbon markets have emerged as a vital tool in the global fight against climate change, offering opportunities for emissions reduction while providing income security, particularly for smallholder farmers. A project led by Hanns R. Neumann Stiftung (HRNS) in Tanzania is fostering the adoption of agroforestry systems among coffee farmers, connecting them to the carbon credit market. This endeavor not only aids in climate adaptation and mitigation but also creates new avenues for income generation.

Carbon credit markets assign value to actions that mitigate carbon emissions, with one credit equivalent to the reduction of one ton of CO2. By adopting activities such as agroforestry or reforestation, smallholder farmers can earn carbon credits, which can be traded internationally. This not only incentivizes emission reduction but also offers a sustainable income stream.

Empowering Smallholder Farmers

Through the project "Integrated Carbon and Coffee-Based Livelihoods," in collaboration with the ACORN platform by Rabobank, HRNS aims to integrate 2,000 farming families in Tanzania's Mbinga district into the carbon market. By promoting agroforestry, the project addresses food and income insecurities while tackling soil erosion. The initiative provides comprehensive training on agroforestry practices, carbon credit mechanisms, and good agricultural practices, ensuring the sustainability of the transition.

The adoption of agroforestry systems presents numerous benefits for farmers, including increased productivity, enhanced soil fertility, and improved resilience to climate change. However, challenges such as initial investment costs and market uncertainties exist. Despite these challenges, the potential long-term benefits outweigh the risks, making carbon farming a promising approach for smallholder farmers.

As the project progresses through its pilot phase, ongoing evaluation and monitoring will provide insights into its long-term viability and scalability. With a commitment to sustainability and livelihood improvement, HRNS remains dedicated to empowering smallholder farmers and fostering climate resilience in Tanzania.

About HRNS:

Hanns R. Neumann Stiftung (HRNS) is a private non-profit foundation founded in 2005 by the family of Michael R. Neumann, an entrepreneur and investor in the international coffee business.

HRNS pursues three goals: (1) to improve the social and economic situation of smallholder families in tropical countries, (2) to protect the environment and nature, and (3) to promote the prospects of young people. The foundation realizes its goals as an implementer, co-financier and sponsor

Media Contact:

Jesko Johannsen

Global Head of Communications

Hanns R. Neumann Stiftung (HRNS)