Supporting climate-resilient African smallholder farmers through carbon markets

The document argues that carbon markets can fill a critical funding gap for African smallholder farmers, who received only 0.8% of climate finance in 2023. It highlights that soil carbon interventions provide dual benefits of climate mitigation and adaptation by improving soil health, water retention, and crop yields. However, the briefing notes that African agriculture remains underrepresented in carbon markets, with only 12 identified projects across the continent. Barriers include high soil sampling costs, strict evidence requirements for baselines, and a lack of localised research. The author recommends that policymakers avoid 'one-size-fits-all' regulations and instead prioritise projects that deliver non-carbon co-benefits like food security and nutrition.

• Climate finance is heavily skewed toward energy and transport, leaving food systems and smallholder farmers severely underfunded. In 2023, food systems received 4.3% of global climate finance allocations, while smallholder farmers received only 0.8%.
• Soil degradation is a pervasive issue in sub-Saharan Africa, with approximately 65% of agricultural land classified as degraded. Implementing land management to improve 'green-water' (infiltrated rainfall) in rainfed smallholder farming is estimated by the World Bank to cost between $250 and $500 per hectare.
• African agriculture is significantly underrepresented in global carbon markets. Out of roughly 720 agriculture projects generating voluntary carbon credits since 2011, only 12 could be identified for the entire African continent.
• Increased rigour in carbon standards, while improving buyer confidence, has created higher barriers to entry for small-scale farmers in developing countries. These barriers include high soil sampling costs, a lack of peer-reviewed local research, and strict requirements for land tenure and sequestration permanence.
• There is a shifting trend in carbon market demand from voluntary systems toward compliance markets, driven by the 39 countries that have implemented carbon taxes. This suggests a potential convergence of the two systems, urging developers to use standards applicable across both platforms.
• The livestock sector in sub-Saharan Africa is a global hotspot for emission intensities due to poor animal health, low-quality feed, and low productivity. However, integrating livestock into regenerative systems can improve soil fertility and biomass conversion to soil organic carbon.

APA

South African Institute of International Affairs (2024). Supporting climate-resilient African smallholder farmers through carbon markets. https://saiia.org.za/research/supporting-climate-resilient-african-smallholder-farmers-through-carbon-markets/

Chicago

South African Institute of International Affairs. Supporting climate-resilient African smallholder farmers through carbon markets. 2024. https://saiia.org.za/research/supporting-climate-resilient-african-smallholder-farmers-through-carbon-markets/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Supporting climate-resilient African smallholder farmers through carbon markets |date=13 November 2024 |url=https://saiia.org.za/research/supporting-climate-resilient-african-smallholder-farmers-through-carbon-markets/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2024supporting, author = {{South African Institute of International Affairs}}, title = {{Supporting climate-resilient African smallholder farmers through carbon markets}}, institution = {South African Institute of International Affairs}, year = {2024}, month = nov, url = {https://saiia.org.za/research/supporting-climate-resilient-african-smallholder-farmers-through-carbon-markets/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }