Contributor : Sara Lamsili, Jnr Project Communication Manager
04 October 2024, Africa: We had an insightful Q&A session with Freddie Kalibwani from ECOTRUST, one of UCCP’s partners.
Introduce yourself and your role at ECOTRUST.
I am Freddie Kalibwani, head of business development at ECOTRUST which stands for Environmental Conservation Trust of Uganda. My role consists of establishing a business development unit focused on climate and landscape restoration, climate resilience, and green finance. I am also in charge of supporting institutional growth and development by leading the mobilization of climate financing and green investments in priority landscapes.
Tell us more about ECOTRUST’s mission.
Our mission is to enhance biodiversity and conservation through sustainable practices by undertaking landscape restoration as a business. We recognize that people are more inclined to restore landscapes when they receive incentives. Growing trees not only makes economic sense but also provides a triple win: it supports biodiversity conservation, enhances climate mitigation by sequestering carbon dioxide, and generates revenue through carbon sales. This real-time income directly benefits households, improving their livelihoods. Over the past 20 years, we have engaged in carbon trading and worked with 50,000 farmers to achieve these goals.
Which trees are you establishing within the UCCP operational region? Why did you choose these specific trees in particular?
We have identified seven species of trees that are suitable for these landscapes. These trees are leafy, able to extract carbon dioxide, and must grow quickly to be effective. The diameter of the tree is of particular interest to us, as it gives insights into the amount of carbon stored, which is crucial since the tree is largely composed of carbon. Additionally, these trees must be compatible with coffee plantations, as we aim to preserve surrounding vegetation. Our goal is to promote biodiversity by introducing a mix of native trees.
How is ECOTRUST planning to activate carbon finance for the smallholder coffee farmers?
Our role is to mobilize farmers to plant trees within their coffee systems, enabling them to receive carbon payments from the trees, which can help improve both their incomes and their coffee businesses. Through the Ankole Coffee Producers Co-operative Union Ltd (ACPCU), we have successfully engaged with 10 organizations in the project area and recruited up to 5,000 farmers, who have planted trees as part of the initiative.
We monitor the performance of these trees, and we are in the process of making payments to the farmers. Payments are made over a period of 10 years, starting from year zero, with gradual payouts. This helps households invest in new coffee businesses, further enhancing their income potential.
By the end of the year, we aim for an 80% success rate, at which point the farmers will be paid. Although rainfall has been low this year, we expect tree planting to continue this month, covering approximately 1,000 hectares and sequestering around 230 tons of carbon.
What metrics will be used to measure the success of the project in terms of both environmental and economic outcomes?
In terms of environmental metrics, we will measure the amount of carbon sequestered. This sequestration effort is expected to generate 3 million dollars in carbon credits. For restoration, we estimate that over 6,000 tons of carbon will be sequestered. This sequestration effort is expected to generate 3 million US? dollars in carbon credits. 60% of the benefits will go to the households and the remaining 40% will support ECOTRUST. Economically, we aim to enhance coffee production, bringing more income to households, which they can use to establish additional revenue streams.
Other transformational changes include 30-year contracts with farmers, providing them with collateral to access more financing. Farmers can pool their carbon income into cooperative organizations, using the capital accumulated from carbon sequestration to lend among themselves. This enables small businesses to grow with the help of carbon payments.
Farmers will receive reliable payments in the third, fifth, seventh, and tenth years, offering them consistent capital to expand their horizons and invest in further economic ventures. These payments will drive transformational change by providing the financial resources necessary for sustainable growth in their businesses and communities.
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