CCDARE Demonstrating Fiscal Benefits of Adaptation

Equitable and sustainable woodlot management increases council revenues by 64% in Makete District, Tanzania

As is typical of most communities in developing countries, communities in Makete District of the Iringa region in Tanzania rely heavily on their resource base for their livelihood. Forest, woodland and grassland resources in Makete contribute vitally to the local economies, to the protection of watersheds of national importance and to the conservation of the environment for agriculture and livestock production. Unsustainable use and severe losses of forest woodland and grassland is a pressing problem in Makete. This is exacerbated by lack of capacity (institutional, legislative and fiscal) for effective management of natural resources and hence for the stability of the ecosystem. These have led to reduced farm productivity, increased work load particularly on women and a dislocated rural economy. Climate change impacts do not make things any better.

In an effort to minimize climate change risks on development efforts in Makete and empowered disadvantaged men and women, the UNEP-UNDP CC DARE programme assisted the country to carry out an action study on how smallholder livelihoods could be improved through woodlots management as an adaptation measure to climate change. The study assessed management practices of smallholder woodlots and marketing of timber. Special attention was given to gender roles and tenure rights of land in order to improve livelihood of households through woodlot management with guidance of researchers from Sokoine University of Agriculture, Tanzania.

The project assisted user groups to develop their own woodlot operational plans, develop harvesting rules, set rates and prices for products, and determine how surplus income would be distributed or spent. There is evidence of significant improvement in the conservation of woodlots (both improved area and improved density) and enhanced soil and water management.

• The outputs of this project have helped spur both economic and environmental benefits. The District financial report indicates that, more than 64% of council revenues in the financial year 2009/2010 were generated from royalty from timber produced from woodlots participating in the CC DARE project increased from 217,909,000 to 357,758,000 (Tanzanian Shillings)).
• Co-benefits include the establishment of community savings and credit societies (Tree Growers SACCOs) for low income members to advance credit to members using their woodlots as collateral. This has promoted inclusive growth and promoted savings and credit operations among members, including loans to finance income generation activities. The demonstrated fiscal benefit has further attracted national government interest in up scaling climate change adaptation measures in improving rural livelihoods and the economy as a whole.
• The Research which culminated in developing good practice guideline for woodlots management in Makete District provided tools to empower the disadvantaged women and girls in woodland management and marketing of wood products. This was done by involving men, women, boys and girls and empowering them with information on tree species selection, source of planting material, land preparation, field planting and spacing, woodlot management, and marketing channels for wood products. The flexibility of the project in targeting specific adaptation barriers allowed for a quick turnover and generated the catalytic effect, helping Tanzania to leverage other funds such as USD $11 million from the UNFCCC Least Developed Country Fund and UNDP.

Woodlots in Makete district -

Before and After Intervention with fire lines around the woodlots
Discussion between the tree growers and the researchers.	School children (girls) excited after learning guidelines to grow their own woodlots have been developed