A review of the constraints to small-scale forest holders engaging in carbon markets

This article reviews the constraints to small-scale forest holders from developed and developing countries engaging in both regulated and voluntary carbon markets through the supply of emissions offsets from both planted and natural forest-based activities. The authors assert that three types of issues feature most prominently in constraining small-scale forest holders from fully engaging across the carbon market value chain. These constraints are that small-scale forest holders typically: (1) lack sufficient technical skills across the gamete of forestry, commercial and legal compliance requirements to engage in carbon markets; (2) cannot afford the transaction costs involved in engaging in carbon markets; and (3) lack marketing skills and access to networks of buyers that should facilitate maximum revenue gain from carbon sales. Opportunities for small-scale forest holders and policy-makers to address these constraints are discussed