Climate change is a pressing concern affecting the livelihoods of farmers in Ghana's Ashanti region due to erratic rainfall patterns, primarily impacting rain-fed agriculture. This research explores the potential of carbon credits to encourage smallholder farmers in the Ashanti region to adopt agroforestry practices as a solution. Agroforestry, if effectively implemented, not only helps combat climate change by capturing carbon but also improves soil fertility, protects crops from extreme weather, and offers various benefits to local farmers. This study delves into the complexities of this issue to propose innovative solutions benefiting both the local farming community and the global climate challenge.

The carbon-based agroforestry system consists of three main parts: the carbon credit system, the institutional system, and the socio-technical system. To study this complex system, we adopt an illustrative case study approach, focusing on the Ashanti region in Ghana. Our research follows a top-down approach, beginning with comprehensive desk research to build a foundational understanding, followed by in-depth interviews with local farmers and selected experts, including government agencies and an NGO, to gain a nuanced understanding of the Ashanti region's context.

Taking into account the carbon credit system, significant attention is devoted to crafting a project framework that aligns with rigorous carbon standards. The accumulation of carbon credits over time serves as a means to secure initial investments. Farmer involvement, particularly their commitment, assumes paramount importance in the context of the carbon credit system, given that only mature trees can generate carbon credits. Primary risks pertain to tree cutting or tree mortality. To mitigate these risks, farmers need comprehensive training and access to essential tools for tree maintenance.

The land tenure system in the Ashanti region is notably complex, predominantly relying on the customary framework. Insights garnered from farmer interviews underscore the pronounced tenure insecurity that impedes farmer participation in the system. Securing land tenure documents is pivotal to instilling confidence among farmers regarding the equitable distribution of system benefits. Notably, varying farmer characteristics and specific traditional areas wield varying degrees of influence over land tenure security and the complexity of acquiring such documents. For system feasibility, a targeted approach focusing on engaging landowners and dispelling misconceptions while emphasising the advantages of land tenure documents is essential. Incentivising landowners through a share of the carbon revenue may also be necessary to ensure their active participation.

Farmers in the Ashanti region grapple with diverse challenges, stemming from erratic rainfall patterns, pest infestations, weed proliferation, and soil nutrient depletion. These challenges are compounded by financial constraints, exacerbating the farmers' livelihood struggles. Notably, farmers place a higher premium on the tangible benefits of increased fruit tree yields as the primary incentive for system participation, displaying comparatively lesser interest in the intangible monetary returns from carbon credits. Effective communication with farmers necessitates addressing their immediate concerns. Consequently, the agroforestry system should be designed to incorporate intercropped fruit trees, delivering additional yields while preserving the cultural significance of existing crops and optimising the environmental advantages of the system. Given that farmers predominantly learn through visual exposure, the initiation of a pilot agroforestry system can substantially bolster their willingness to participate. Simultaneously, the development of tailored training programs and the provision of essential tools are indispensable for empowering farmers to proficiently maintain the trees.

The significance of carbon credits within the system primarily lies in compensating cooperating and financial parties, as farmers prioritise other benefits. The institutional system's challenges, particularly in securing land tenure documents, pose substantial feasibility hurdles for the system's viability. In future research on this topic, it would be valuable to seek the insights of traditional authorities.