By putting smallholder farmers at the centre of climate finance and landscape restoration, Uganda can turn conservation into a pathway to more resilient livelihoods, healthier ecosystems and sustainable economic growth.
For smallholder farmers across Uganda, climate change is not a distant environmental concern. It is a growing threat to food security, household incomes and the natural resources on which rural livelihoods depend. From the landslide-prone slopes of Mount Elgon to drought-vulnerable agricultural areas, changing rainfall patterns, prolonged dry spells, floods and soil erosion are making farming increasingly unpredictable.
The stakes are significant for a country whose economy and livelihoods depend heavily on agriculture. According to the World Bank, agriculture accounts for approximately 24.8% of Uganda’s gross domestic product and employs about 72% of its labour force. When climate shocks disrupt agricultural production, the consequences extend beyond individual farms to household incomes, food security and national economic development.
The World Bank’s 2025 Uganda Country Climate and Development Report warns that, without stronger climate action, climate change could reduce the country’s economic growth by up to 3.1% by 2050, push an additional 613,000 people into poverty and contribute to as many as 12 million internal migrants. These projections underscore why climate resilience must be treated as an economic and social priority, not simply an environmental ambition.
The scale of the challenge demands a fundamental rethink of how climate action is designed, financed and implemented. Communities must move from the margins of climate interventions to the centre of decision-making, investment and implementation. Without their indigenous knowledge, participation and long-term commitment, efforts to restore landscapes and strengthen resilience risk falling short of their potential.
The climate crisis disproportionately affects communities whose livelihoods depend on natural resources. Despite Africa’s relatively small contribution to historical global greenhouse gas emissions, the continent faces significant losses, including declining agricultural productivity, water shortages and biodiversity loss.
In Uganda, land degradation compounds these challenges. A 2020 World Bank economic update estimated that 41% of the country’s land was degraded, with land degradation and soil erosion costing approximately 17% of GDP. These figures highlight the economic cost of unsustainable land management.
Restoring degraded landscapes requires more than community participation; it requires financial resources that enable people to conserve their land without undermining their livelihoods. Yet climate finance often fails to reach those best placed to deliver local solutions. Research by the International Institute for Environment and Development, updated in November 2025, found that less than a third of international climate finance supported local action, while less than 0.2% specifically targeted locally led outcomes.
Farmers are expected to restore land, protect forests and adopt sustainable practices, but these efforts require time, skills and money. Without viable economic alternatives, households may struggle to balance conservation with immediate needs.
The answer is not to abandon carbon markets or other climate-finance mechanisms, but to make them more inclusive, ensuring communities participate in decisions, receive fair benefits and can sustain conservation beyond a project’s lifetime.
For more than two decades, the Environmental Conservation Trust of Uganda (ECOTRUST) has promoted community-led landscape restoration through its flagship Trees for Global Benefits (TGB) initiative, which operates under the Plan Vivo standard.
The initiative connects smallholder farmers to carbon finance, enabling them to integrate trees into existing farming systems while sustaining agricultural production. Through Payment for Ecosystem Services (PES) agreements, farmers receive payments for delivering environmental benefits, including carbon sequestration, creating incentives for long-term land stewardship.
This approach makes conservation more viable by linking environmental protection to household livelihoods. Farmers are recognised not only as custodians of the land but also as providers of valuable ecosystem services.
According to programme figures, TGB has paid more than US$8.78 million to 51,874 households across 26 districts and supported sustainable agroforestry and landscape management across more than 34,000 hectares. The trees planted through the programme are projected to sequester more than 7.5 million metric tonnes of carbon dioxide over their growth cycles.
These results illustrate how climate finance can connect global environmental goals with local economic opportunities, encouraging communities to participate in long-term conservation.
The value of community-led conservation extends beyond carbon sequestration. Integrating trees into farming systems can diversify farmers’ incomes, reduce soil erosion, support biodiversity and improve land management. Payments for ecosystem services can also help households meet essential expenses and reinvest in their farms, making conservation both an environmental and economic opportunity.
However, these benefits depend on appropriate tree species, secure land rights, technical support and fair, transparent payments. Farmers must be involved not only in planting trees but also in decision-making and monitoring outcomes.
To strengthen community-led climate action, three shifts are needed. First, climate finance must reach local communities through accessible funding and transparent benefit-sharing. Second, climate mitigation must go hand in hand with adaptation and livelihoods, including soil restoration, resilient agriculture and income diversification. Third, long-term investment and accountability must be prioritised through continued land management, environmental monitoring and credible reporting.
Ultimately, climate action should be measured not only by carbon stored, but also by its contribution to resilient livelihoods and healthier ecosystems.
Climate resilience must be built within the communities and landscapes already experiencing climate change. Uganda’s experience shows how linking conservation with livelihoods can incentivise farmers to protect and restore their land. Scaling this approach requires climate finance that values local knowledge, distributes benefits fairly and measures lasting impact.
Ultimately, climate action must be measured not only by carbon stored but also by its contribution to resilient livelihoods and healthier ecosystems. Investing in smallholder farmers is an investment in Uganda’s climate resilience and a more sustainable future
