By putting smallholder farmers at the centre of climate finance and landscape restoration, Uganda can turn conservation into a pathway to resilient livelihoods, healthier ecosystems and sustainable economic growth.
For smallholder farmers across Uganda, climate change is no longer a distant environmental concern. It is an increasing 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 per cent of Uganda’s gross domestic product and employs about 72 per cent 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 per cent 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.
Addressing this challenge requires 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 Finance Gap Is Also a Community Resilience Gap
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 per cent of the country’s land was degraded, with land degradation and soil erosion costing approximately 17 per cent of GDP. These figures highlight the economic consequences 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 per cent specifically targeted locally led outcomes.
Farmers are expected to restore degraded 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 their immediate needs.
The solution is not to abandon carbon markets or other climate-finance mechanisms, but to make them more inclusive. Communities must participate in decision-making, receive fair benefits and have the resources to sustain conservation beyond a project’s lifetime.
Making Conservation Work for the People Who Protect the Land
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. These payments create 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, Trees for Global Benefits 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.
Beyond Carbon: Building Resilience from the Ground Up
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 an economic opportunity.
However, these benefits depend on selecting appropriate tree species, securing land rights, providing technical support and ensuring fair and 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 major shifts are needed.
First, climate finance must reach local communities through accessible funding mechanisms and transparent benefit-sharing arrangements. Communities should have a meaningful role in deciding how resources are used and how the resulting benefits are distributed.
Second, climate mitigation must go hand in hand with adaptation and livelihood support. Investments should combine carbon sequestration with soil restoration, climate-resilient agriculture and income diversification to help households withstand climate shocks.
Third, long-term investment and accountability must be prioritised. Landscape restoration requires sustained land management, environmental monitoring and credible reporting to ensure that the benefits endure beyond the lifespan of individual projects.
Ultimately, climate action should be measured not only by the amount of carbon stored but also by its contribution to resilient livelihoods and healthier ecosystems.
Making Communities Central to the Climate Solution
Climate resilience must be built within the communities and landscapes already experiencing the effects of climate change. Uganda’s experience demonstrates how linking conservation with livelihoods can encourage farmers to protect and restore their land while creating opportunities for sustainable economic development.
Scaling up this approach requires climate finance that values local knowledge, distributes benefits fairly and measures lasting impact. It also requires governments, development partners, conservation organisations and private investors to recognise smallholder farmers as essential partners in delivering climate solutions.
Community-led climate action offers a practical way to connect environmental protection with economic opportunity. When farmers have access to finance, technical support and fair compensation for the ecosystem services they provide, conservation becomes more than an environmental obligation; it becomes an investment in their livelihoods and the future of their communities.
Investing in smallholder farmers is therefore an investment in Uganda’s climate resilience, healthier ecosystems and a more sustainable future.
