Farmland Restoration in Southern Highlands (FLASH)
Project Developer
- Total LandCare Tanzania
Size
- Large
- (15425206)
Maturity stage
- Mature for investment
Country
- Tanzania
Financing mechanism
Contact
Mohamed Mapalala
mmapalala@tlcmw.org
Link
Environmental benefits
- Enhanced soil quality, reduced soil erosion, and enhanced soil fertility
- Enhanced on-farm biodiversity primarily in the form of additional tree products and increased ecosystem services from bees, birds, insects and wildlife
- Enhanced water infiltration and soil moisture
- Increased sustainability in fuelwood practices
- Reduced erosion from water runoff and wind, and progressively accumulated organic matter through leaf-litter to replenish top soil and improve its structure.
Community benefits
- Nutritional diversity enhanced through on-farm crop diversity
- Nutritional diversity enhanced through increased income for purchase of additional food stuffs
- Nutritional diversity enhanced through increased availability of fodder for livestock
- Nutritional benefits from the production of products such as honey, medicine and tree fruits
- Village level governance strengthened through training and mutually agreed bylaws.
- Market linkages developed and fortified and framework established for potential future linkages with carbon markets which could bring significant additional revenue to communities
- Improved small-scale farmer access to bulk purchasing of inputs and marketing of farm produce, access to markets, information and extension support.
Business model
Our business model is focusing on the following points:
•Maximizing the direct and financial benefits to communities while meeting the minimum requirements of investors.
• Maximizing the opportunity for communities to benefit from increasing carbon credit prices on the market, and forward selling carbon credits where necessary to ensure regular and consistent funding disbursements.
• Optimizing the use of invested funds to maximize the scale and positive impact of the project, while mitigating financial risks.
• Funds provided in yearly tranches during project implementation, with carbon credits being generated and issued every 5 years, from year 5 to year 30. 50% of credits are returned to the Investor, and 45% are sold and the proceeds distributed to communities on a regular basis. 5% of credits are retained by TLC as a buffer.
• Legal Rights & Ownership: usually, credits produced on private land are owned by the landholders and on public land by the relevant government. Agreements are made with participating landholders and governments to participate in the project, to assign their interest in the portion of credits required by the Investor and TLC, and to appoint TLC their trustee to monetize their portion of credits (usually 45%) and disburse revenue on agreed terms.