Carbon-based forestry (CBF) projects for the carbon market have been proposed with the aim of mitigating climate change, enhancing forest cover and improving livelihoods in developing countries. Debate has ensued regarding the validity of applying market-based mechanisms to climate mitigation in the form of CBF activities. Through in-depth interviews and focus groups, this study explores the various stakeholders’ involvement in the development of CBF projects in the Peruvian Amazon and reveals how their interests influence the types of activities that are established. Farmers’ perceptions on the carbon trade are examined and it is demonstrated that the potential of earning a carbon credit may influence farmers’ current land management practices in favor for implementing reforestation or agroforestry systems on their terrain. Regardless, the number of obstacles and the preferences of stakeholders significantly limit the ability of small-scale farmers to access and benefit from the emerging market.

Carbon-based forestry (CBF) projects for the carbon market have been proposed with the aim of mitigating climate change, enhancing forest cover and improving livelihoods in developing countries. Debate has ensued regarding the validity of applying market-based mechanisms to climate mitigation in the form of CBF activities. Through in-depth interviews and focus groups, this study explores the various stakeholders’ involvement in the development of CBF projects in the Peruvian Amazon and reveals how their interests influence the types of activities that are established. Farmers’ perceptions on the carbon trade are examined and it is demonstrated that the potential of earning a carbon credit may influence farmers’ current land management practices in favor for implementing reforestation or agroforestry systems on their terrain. Regardless, the number of obstacles and the preferences of stakeholders significantly limit the ability of small-scale farmers to access and benefit from the emerging market.