Rural Community Participation and Accruing Benefits in Climate Change Interventions under Market-Based Instruments in the Global South

Abstract

Market-based instruments are increasingly used in climate change interventions to promote community participation and generate socio-economic and environmental benefits. However, evidence on their effectiveness in rural communities remains limited. This study examines community participation and associated benefits in two climate change projects in Tanzania: Milola in Lindi Rural District, implemented by a non-governmental organization under a Payment for Ecosystem Services scheme, and Mapanda in Mufindi District, implemented by a private company through voluntary carbon offset trading. Data were collected through household surveys involving 177 households (110 in Mapanda village and 67 in Milola West village), six focus group discussions, and key informant interviews with village leaders, local government officials, project managers and community elders.  Findings reveal notable differences in participation and benefit outcomes between the two projects. While both communities were involved through information sharing and consultation, Milola exhibited stronger collaborative participation. Communities in Milola reported a wider range of benefits, including direct cash payments, environmental education, improved farming practices, beekeeping, and socio-technical infrastructure. In contrast, benefits in Mapanda were largely associated with ecosystem services and community facilities such as classrooms and health care infrastructure. Community satisfaction was also higher in Milola than in Mapanda. The study suggests that the type of project implementer influences the level of community participation and the benefits realized. It concludes that meaningful and sustained community engagement throughout the project lifecycle is essential for maximizing the effectiveness and long-term success of market-based climate change interventions.

Keywords: Market-based mechanisms, carbon markets, community participation, project implementer organisation, livelihood benefits, Global South.