What impacts can we expect on livelihoods, especially for the poor?



4 What can we expect as the CDM evolves?
4 What can we expect as the CDM evolves?

What impacts can we expect on livelihoods, especially for the poor?

Where forest goods and services are scarce, technologies and investment are lacking, or employment opportunities are few, CDM land use projects could benefit communities - especially if there are agreements to ensure access to these benefits by needy parts of the community. But such projects can also have negative impacts on local food security and development options. It is too easy for governments and corporations to assume that 'empty' land is not being used.

Given a likely emphasis on large-scale forestry, whether livelihoods improve depends on: Who runs the projects, and How those projects are implemented
The requirements of the CDM 'project flow' can be daunting for smaller groups with few international connections. The transaction costs can be high. Thus it will be more difficult for smaller companies and community groups to access the benefits of CDM. The livelihood impacts of projects run by large companies will consequently tend to be determined by: the social standards selected (one reason to get the sustainable development criteria right); their application in practice (a reason to link up with active sustainable development initiatives that can ensure that afforestation does not take place on land which is socially important); and by the scope for corporate-community partnerships.

If smallholders/communities are to be actively involved in a CDM project, not only must their land use systems be recognised by the sustainable development criteria applied to CDM nationally, but also the transaction costs must be overcome. This can be done if a third party (e.g. NGO, rural development bank or government extension service) brings people together into a group scheme, assuring the provision of information, the consistency of the management regime, and the financial and administration systems for cost-benefit sharing amongst many small players. The sustainable livelihoods framework can be a useful diagnostic when assessing the impacts of such group projects. www.livelihoods.org

Ultimately, carbon conservation activities (management of natural forests for biodiversity, ecotourism, watershed and other non-consumptive activities) may offer some of the highest livelihood benefits rather than afforestation. However, these are not yet eligible under the CDM. Of the eligible activities, agroforestry and integrated rural forestry and energy projects have considerable livelihood benefits.

What corporate behaviour can we expect from CDM investors?

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