Abstract

Smallholder farmers are key players in global climate action, yet their participation in the Voluntary Carbon Market (VCM) remains constrained by financial, structural, and governance challenges. This report provides an in-depth examination of the VCM’s structure, key stakeholders, and pricing mechanisms, highlighting smallholders' opportunities and barriers in accessing this market. Through two case studies—the Jinotega & Matagalpa Project in Nicaragua and the Quilombolas Social Carbon Project in Brazil—the report illustrates different value chain models and governance structures that influence benefit generation and distribution for smallholder farmers. Findings suggest that tailored governance mechanisms, transparent pricing, and equitable value-sharing models are essential for enhancing smallholder participation. The report concludes with recommendations on optimizing compensation, improving governance, and ensuring long-term sustainability for farmers engaged in carbon-offsetting projects.
Original languageEnglish
PublisherFair & Smart Data spearhead - Maastricht University
Number of pages70
Publication statusPublished - 2025

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