Agroforestry and carbon: strengthening coffee farms and rural economies

The shift toward regenerative agriculture is creating new economic opportunities for coffee and cocoa producers. One of these is the sale of carbon credits, which monetize carbon dioxide sequestration through agroforestry systems. This approach helps strengthen farms over time while providing meaningful additional income for rural families.

The strategic importance of Agroforestry Systems 

Agroforestry Systems (AFS) are crucial for coffee and cocoa cultivation. Their shade trees shield plants from extreme weather while also acting as potent regenerators of the farm’s ecosystem. This ultimately helps producers to enhance the productivity and longevity of their systems in the face of climate variability. Some key benefits of implementing AFS are improving soil health and fostering biodiversity, both key for biological pest control and pollination.

Recognizing and valuing the environmental contribution of agricultural producers using AFS is a key opportunity for the entire industry. The sale of carbon credits is a direct mechanism that transforms these environmental benefits into monetary income. This ensures that sustainability efforts are economically viable for farming families, while also facilitating a direct investment in the resilience and stability of global coffee and cocoa supply chains.

“I work alongside my family on our farm. I am very grateful for this support, because we are focused on improving and renewing our crops to have better production. We are going to invest the incentive in projects on the farm that help us move forward and strengthen our family’s work.”

Fernandina Torres, participant in the Asómbrate Programme.

Access to the voluntary carbon market

The Asómbrate programme, designed by Solidaridad and Rabobank and implemented in Nicaragua in collaboration with the Alliance Bioversity – CIAT, supports small-scale producers in implementing and enhancing their AFS. The Acorn platform is used to register, quantify, monitor and trade the carbon credits generated by the trees on the voluntary market.

The programme has achieved significant scale in Nicaragua, with 11,645 producers incorporated into the Acorn platform. The programme provides technical support for managing and enriching forest species of high ecosystem value, on plots with an average area of 2.18 hectares. This technical assistance not only strengthens productive plots but is also key to environmental conservation.

Improving income and strengthening the value chain

Thanks to the implementation of regenerative agriculture practices, a second group of 184 coffee and cocoa producers recently sold 1,049 tons of CO₂ to five international buyers. The sale generated €41,960, with 80% (€33,568) transferred directly to the producers. This milestone, which included the first payment to 18 cocoa producers, demonstrates the model’s scalability to benefit new participants in the region.

“We want to plant more forest trees; we are going to use the support to continue reforestation, fertilize, and pay for labor,” shared Yuliet Maribel Leiva, a participant in the Asómbrate Programme. “I hope to have good production this year and that the project continues to help more people, because we all consume coffee, and the important thing is to reduce pollution and take care of our environment.”

For the coffee and cocoa value chain, carbon payments provide producers with an additional income stream that can be reinvested in farm improvements. At the same time, these mechanisms help companies mitigate reputational risk by meeting carbon-neutrality goals while demonstrating a commitment to climate action and producer well-being.

Capacity building and knowledge multiplication

To support long-term implementation, we have trained 450 community trainers and technicians in climate-smart practices, agroforestry systems management and the voluntary carbon market. These leaders have already shared the knowledge with 7,236 producers organized into 80 cooperatives and businesses, promoting the adoption of good practices and strengthening local capacity. The programme aims to reach 25,000 producers in the coming years.

This experience shows how training, technical assistance and access to the carbon market help producers generate additional income while contributing to climate change mitigation. Collaboration between producers, companies and partners is essential to advancing environmental conservation and economic productivity through regenerative agriculture.

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