Homestead Eco Life

Farmers in Ethiopia Have Learned to Restore Forests and Earn Income from Carbon Credits

In southern Ethiopia, in the Humbo district, farmers have demonstrated that forest restoration can be not only an environmental effort but also an economically viable one. The story of this landscape shows how degraded mountain slopes were transformed into a source of sustainable income for local communities through collective action and carbon financing.

From Barren Mountains to a Living Forest

In 2005, the international organization World Vision launched an initiative in Humbo focused on farmer-managed natural forest regeneration. The project covered 2,728 hectares of severely degraded mountainous land. During the first month, specialists held consultations with local communities, paying particular attention to the poorest households that depended on charcoal production and fuelwood collection for survival.

To implement the project, seven cooperatives were established at the kebele level (local administrative units). Their members received training in basic forest management, while people dependent on forest exploitation were offered alternative sources of income. Over time, the cooperatives united into a single union, which today has 5,184 members, about 25% of whom are women.

Resistance, Threats, and First Successes

The path to forest restoration was far from easy. According to Mekonnen Gudjo, chairman of the Hobicha Bada Woyito Mountain Forest Development Cooperative, many residents initially opposed the restrictions.

“People did not want to lose free access to forest resources. When we tried to stop logging and livestock grazing, committee members were pressured and their crops were destroyed,” he recalls.

Tensions escalated to the point where one cooperative chairman was attacked and later died from his injuries. Only after the intervention of local authorities and the organization of security measures was it possible to protect the area and continue the project.

Today, the cooperative manages 372 hectares of restored forest. While it initially had only 25 members, it now includes 935. Some farmers were required by court order to leave land inside the fenced area, while others had to remove eucalyptus plantations that did not align with ecosystem restoration goals.

How Farmer-Managed Restoration Works

The core tool of the project was Farmer-Managed Natural Regeneration (FMNR). This approach is based on regenerating vegetation from living stumps, roots, and seeds. Farmers select the strongest shoots, carry out pruning, and guide tree growth to accelerate biomass accumulation. In addition, seedlings were raised in nurseries and supplementary planting was carried out in open areas.

According to World Vision staff member Mulugeta Zeleke, FMNR is “a low-cost, fast, and easily replicable method for restoring agricultural land, forests, and grazing areas.”

Results became visible within a few years: forest cover reduced the risk of flooding, stabilized rainfall patterns, improved groundwater levels, and even contributed to the return of natural springs. Wildlife returned to the area, and the local microclimate became cooler and more stable.

Carbon Credits: An Economic Turning Point

A major turning point came in 2012, when the Humbo cooperatives began receiving income from the sale of carbon credits. Prior to this, carbon market mechanisms were largely unknown in the Wolaita region, but the project quickly attracted attention and became a model for other communities across the country.

Revenue from carbon credits enabled the cooperative to establish a flour mill offering low prices to local residents, open an office, and rent warehouses and shops. Part of the income is provided to cooperative members as interest-free loans to support their livelihoods.

Each year, specialists measure carbon stocks at 85 sample plots measuring 20×20 meters across the project area. Although income from carbon credits fluctuates, its potential is clear: in 2024 the cooperative earned about 435,000 birr, while in 2025 revenues exceeded 5 million birr. In the near future, the cooperative plans to distribute 10,000 birr each to 500 members.

Lessons from Humbo

The Humbo experience shows that forest restoration is possible even under conditions of severe poverty and social conflict—provided that local communities are genuinely involved and benefits are distributed fairly.

“This project changed my understanding of what is possible. If people believe in an idea and feel ownership of it, they can achieve what seems impossible,” said Dr. Getachew Hiruy of the Commission for Development and Social Services.

Post Views: 194