This analysis reveals carbon financing supports livelihood resilience in vulnerable communities, suggesting pathways for policy improvement.
This study investigates the role of carbon financing technologies in enhancing rural livelihood resilience within climate-vulnerable communities globally. Focusing on four key dimensions, respectively income diversification and poverty alleviation, agricultural productivity enhancement through carbon mechanisms, community-based forest management for carbon sequestration, and policy frameworks for equitable access, the research synthesizes evidence from 96 peer-reviewed studies (selected via PRISMA methodology from an initial pool of 2,567 publications spanning 1992-2024). Findings indicate that carbon financing can effectively reduce vulnerability when intentionally designed for resilience, with digital technologies cutting transaction costs by 60% while improving transparency. Community-managed forests-maintained carbon stocks comparable to protected areas, though secure land tenure proved critical for equitable outcomes. Policy analysis highlights the importance of tenure reforms and transparent benefit-sharing, with cooperative models and blockchain emerging as key governance tools. The study identifies actionable pathways for scaling impact, including dedicated resilience-focused funding streams, strengthened community land rights, and blended finance approaches. By bridging carbon finance and livelihood resilience literature, this work offers a nuanced understanding of context-specific success factors, contributing to policy and practice in sustainable rural development. Further research should address regional evidence gaps and assess long-term impacts.
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Tumushabe et al. (2025) studied this question.
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