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.

The monitoring and evaluation team from Birjand University continued its reporting for the second year. In 2007, the group members were available when to take soil samples to assess erosion and sedimentation, vegetation coverage and Carbon analysis. The year witnessed a training workshop by the socio-economic monitoring and evalution group.   In this workshop several of the Village Development Group (VDG) chairpersons and secretaries participated along with students to familiarize themselves with completing of socio-economic forms and questionnaires. The team was able to collect the data with the collaboration of the group in five days.Documentation is a unique attribute of the Carbon sequestration project. The project has made every effort to document its activities and its findings for all those interested. In 2007 all quarterly reports were prepared as planned.  The 2006 annual report was prepared and published both in Farsi and English. The first and second quarterly newsletters were published entitled “Andisheh Sabz” (Green Idea). The organization of VDG’s based on dissemination of participatory management is among the main project objectives.  In 2007 four new villag development groups (mixed) were formed.  Currently there are 30 active groups consisting of 7 all women, 7 all men and 16 mixed. These VDGs cover 18 villages with 1036 members 54% women and 46% men.In order to further develop the extension of participatory management several participatory activities were undertaken. With collaboration from the project VDG in Nazdasht village planted seedlings in the area around the solar water heater, the village main street and both sides of the Nazdasht road. In Janatabad village the project and the village development group planted seedlings around the area designated for the installation of the solar water purification unit. Nine members from the area’s VDGs (Group 9) were selected as voluntary Rangeland Guards to assist with the protection of rehabilitated rangelands.  The project also assisted, in collaboration with the group in Bahamorz village, to build a public bathhouse with contributions from local donors.Overall the project conducted 17 training activities in 2007, 53% of which leading to income generation (Carpet weaving, improvement tapestry weaving). Remaining 43% of activities included organizational and resources control.  Public awareness and advocacy activities such as publication of a puzzle for children and a brochure as well as participation in handicraft exhibitions inside and outside the province were also undertaken.Following the formation of the Community Development and Resources Management Committee (CDRMC) in 2006, approvals were received for the formation of a cooperative named Alghadir Development Cooperative was established as an umbrella legal entity that covers and support all VDGs. The Alghadir Development Cooperative in Hosseinabad Plain has been registered in the area and currently possesses 450 members. In the first quarter of 2007, the second general meeting of Alghadir Cooperative took place with the participation of chairpersons and secretaries from VDGs.  During the third quarter a meeting of the Board of Directors of Alghadir Cooperative took place to plan for its activities.  In 2007, 109 million seedlings (one million Haloxylon and 90,000 potted Artiplex seedlings) were successfully produced. Additionally 21,000 Haloxylon seedlings were also planted during the third quarter are growing successfully. In 2007 with assistance of the VDGs out of 2,338 hectares of rangeland in the area, seedlings were planted in 1890 hectares while seeds were cultivated in 488 hectares. Additionally, productive trees including 1,750 seedlings of barberry, and 600 almond trees were distributed among 14 and 10 village development groups respectively in 8 villages. There is a clear relationship between poverty, destruction of rangelands and Carbon sequestration. One of the important objectives of the project is the formation of a local credit fund.  At the end of the 2007, 172 million Rials ($ 20,000) was available as savings from the local community. The eights meeting of the PMC took place whereby the fourth phase of income generation projects eligible for loans were approved. Up to the end of 2007, the project team was able to distribute about $31,000 of the available credit from the fourth phase between 11 VDG’s.  During the year, 18 groups allocated about $18,000 to support income generation projects among their members from available savings within each group.More than 195 individuals visited the project during the year.  The most important visitor of the project was Dr. Sharifi, Head of the Forests, Rangelands and Watershed Management Organization.Average progress of activities in 2007 was approximately ____ % and expenditures were ____% of the planned expenditures.

IntroductionIslamic Republic of Iran is among the developing countries suffering the most from desertification.  Rehabilitation of degraded rangelands is among the country’s top priorities. However, in the absence of sufficient resources, the country has not been able to cover larger areas other than its allocated budgets.  With people’s participation, the government and the rural communities can rehabilitate the land with lower costs. Implementation of other programs such as cultivation of wooded and fodder plants can also slow down the trend in desert advancement.  This activity will not only increase Carbon sequestration but also provide fodder for livestock.UNDP’s experience in social development in Iran indicates that with the active participation of the local communities in areas with low rainfall, more sustainable rehabilitation efforts can be implemented at relatively lower costs.  With introduction of incentives into current rehabilitation activities outcomes will be more pronounced and longer lasting. Financial and organizational mechanisms at the local level with the final objective to attain human development in designated remote areas can lead to increased economic activities.In early 2003, the Carbon sequestration project started with the investment from the Global Environment Facility (GEF), through a bilateral agreement between the Government of the Islamic Republic of Iran and UNDP. From a global perspective the main project objective is sequestration of existing Carbon in the atmosphere. The project will show that degraded rangelands can be rehabilitated economically by the people and for the benefit of those utilizing the land.  It will also exhibit the capacity of plants and soil in this area to sequester Carbon.  From a national perspective, the main priorities for the government include improving land productivity in semi-arid areas and controlling desert advancement.  Locally the project objective is the rehabilitation of area covered by the project in Southern Khorasan province improving the socio-economic conditions of the local communities in order to eradicate poverty and increasing Human Development Indexes in Hosseinabad area.  The project used participatory methods to mobilize and empower local communities so that they could participate in rehabilitation efforts in designated area. The experience gained from the participatory land rehabilitation and the management of natural resources in the Carbon sequestration project can be replicated throughout Iran and outside the country in areas with similar conditions.   Background for execution and implementation:  The carbon sequestration project is currently implemented using participatory methods and mobilization of local communities in Hosseinabad‘s Ghienab area.  People’s participation and views were taken into consideration during all phases of the project from planning, implementation, to monitoring and evaluation. The project is looking to achieve “Rangeland Rehabilitation with the people and for the people”.Report preparations and limitations:This report was prepared based on quarterly project reports.  Quarterly reports are prepared within the framework of the working programme based on project achievements for the preceding quarter. The report is prepared by the project’s extension unit collecting information from other units.  The report is reviewed by the project manger and is approved by the PRC.Project Achievements (outputs)

Birjand university monitoring and evaluation team continued its study for the second year.  In 2007, like 2006, the team members continued taking soil samples to assess erosion and sedimentation, vegetation coverage and Carbon analysis.

During this period, the project office provided members with basic socio-economic data for monitoring and evaluation (household data and rangeland area) in collaboration with VDGs.

Based on the emphasis of project managers on participatory implementation of all activities including project monitoring, in 2007 also a training workshop led by the socio-economic monitoring and evaluation group leader. Three VDG chairpersons (1 woman and 2 men), 8 VDG secretaries (2 women and 6 men), 9 VDG members (8 women and 1 man) participated along with 15 students.  Participants were acquainted with socio-economic forms and questionnaires and their completion.  The monitoring team collected the information with the collaboration of the participants from villages in the area in 5 days.

News and project achievements during the year were printed in local and national newspapers as well as reputable natural resources publications and provincial and national radio and television networks.  In 2007, the production of a documentary movie has progressed well with several visits by the filming staff to enhance their understanding of the project objectives and activities in various areas and filming of interviews with the locals, project managers and government representatives. The film has is its final stages of production.