Integrated Bamboo Agroforestry for Carbon Finance and Smallholder Livelihoods in the Ethiopian Afromontane Highlands: A Study on Carbon Finance

Carbon finance projects face a temporal disconnect: carbon revenues accrue over decades, while smallholder farmers require immediate returns. This study evaluates an integrated agroforestry model centred on Yushania alpina with native companion species, intercropping, biochar soil amendment, peer-to-peer learning, and pilot cooperative finance in the Ethiopian highlands. A mixed-methods design was applied on 66 stratified random plots (0.2 ha each) in Sidama Region (June 2024–April 2026). Survival of Y. alpina reached 95% across 170 ha, and companion species 91%. Mean survival in 66 plots was 90.6%, with 98.5% of plots rated good or excellent. Weeding effectiveness was the strongest predictor of survival (β = 12.4, p < 0.001). All interviewed farmers adopted intercropping; 64% reduced synthetic fertiliser use. A trust index increased by 68% (p < 0.001). Biochar experimental plots raised potato yield by 22–31% and soil pH from 5.2 to 6.4. Per-hectare afforestation cost was USD 1,984, 40–50% above regional benchmarks. The model is ecologically effective, but carbon finance viability is constrained by high costs and insufficient input access. Blended finance, community biochar hubs, formalised peer-to-peer learning, and infrastructure investment are needed. (Word count: 186).

Keywords: Carbon finance; Yushania alpina; Biochar; Peer-to-peer learning; Ethiopia.