Within the framework of the Climate Change, Agriculture and Food Security Policy Research Program, the Department for International Development (DFID) requested an analytical study to enhance their understanding of whether and how carbon market mechanisms can be used to reduce emissions from agriculture and generate financial flows to developing countries. The study was lead by Climate Focus with support from the International Institute for Applied Systems Analysis (IIASA) and UNIQUE.

• Reviewed existing projects and policy mechanisms for climate finance in the agricultural sector.
• Assessed future agricultural approaches, primarily through compliance markets.
• Modeled the potential emission reduction/removal, credit volumes and prices.
• Identified technical, legal, institutional and structural barriers.
• Identified pros and cons of market mechanisms, financing agreement and climate policies.
• Reviewed appropriate agricultural practices in the developing world that serve climate objectives.