Murugan, P. (PhD)Israel, Fekadu2018-06-142023-11-182018-06-142023-11-182014-12http://etd.aau.edu.et/handle/12345678/942The emergence of markets for ecosystem services and the implementation of A/R CDM projects across the developing world in recent time have changed the nature of dependence of rural people on forest resources. It is, therefore, timely to investigate the livelihood impacts of carbon forestry activities that are implemented on communal forest land. The main objective of this study was to disclose the impacts of Humbo A/R CDM project on the livelihoods of local people. The study employed mixed methods research. Three out of seven Forest Development and Protection Cooperatives (FDPCs) were purposively selected. 132 households were selected from three FDPCs for household survey using systematic random sampling technique. In addition, four key informant interviews and three focus group discussions were conducted to investigate community level impacts of the project. Findings indicate that the project caused a significant reduction in the households’ dependence on the forest land for fuel-wood, fodder and grazing area which in turn forced 24.2% of the households to purchase fuel-wood, 39.4 % to purchase fodder and 62.9 % to reduce their livestock possessions. Although 68.9 % of the respondents reported to have benefited from the created job opportunities, and 37.1 % received skill trainings in income generating activities, only 22% of the respondents attributed the improvement of their households’ income to benefits associated with the project. The protection of the forest land came up with negative livelihood outcomes particularly for households which previously highly depended on the forestland and for those living in close proximity of the protected forest due to its discouraging effect on crop and livestock production. At community level, the project achieved positive outcomes such as formation of FDPCs and strengthening their institutional capacity, building physical assets though some were not in line with priority needs of the communities, improved microclimatic conditions and increased savings of FDPCs. Whereas, weakening of informal institutions for joint ownership of livestock (Kottaa), share breeding of livestock (Ulo Kotta) and exchange of draught oxen (Booraa Gatuwaa) were worth mentioning negative outcomes. Finally, with regard to the attitude of the respondents towards the protected forest, among several variables, only educational status, size of farmland and the distance of the households from the forestland were found to statistically significantly predict the attitude of the respondents towards the forest. As sustainability of the forest depends on the positive valuation of the forest by surrounding inhabitants, fencing the forest area to reduce human-wildlife conflict; developing frameworks for access to microcredit services in each FDPCs and letting the community decide over the utilization of carbon revenue are, therefore, recommended measures to achieve positive livelihood impact at household level and thereby to ensure the sustainability of the forest managementenAfforestation/reforestation;Clean Development Mechanism; coping strategies; Ethiopia; Humb; livelihood; local people; protected forestThesis