Executive SummaryCarbon sequestration project was designed to develop the participatory resource management model suitable for arid and semi-arid areas, to address poverty alleviation and improve the land capacity for Carbon sequestration. The project started its activities in 2003 in Hosseinabad plain in Southern Khorasan province and will continue into 2009. The project covers 144,000 hectares of Hosseinabad Gheinab with 31 villages. It has been recognized as the most successful project implemented by the United Nations Development Programme (UNDP) in Iran four years after its start with the efforts of those involved particularly the local community.In 2005 the project focused on gathering and organization of local community as Village Development Groups (VDGs). In 2006 the project focus shifted to strengthening and formalizing these groups and in 2007 the project objective was to set in motion the operation of Alghadir cooperative and marketing of the production from the VDGs. The project management consisted of the Project Management Committee (PMC), Project Review Committee (PRC), and the Co-Management Board (CMB) which were formed in 2005. One CMB meeting, four PRC meetings and a PMC meeting were all conducted as planned during 2007.