Valuation and Market Prefeasibility of the Carbon Capture Ecosystem Service in Livestock Farms Located in the RHBRP, Honduras

Abstract

Carbon sequestration in livestock farming is essential for mitigating climate change and promoting sustainable production practices. In Honduras, the livestock sector occupies 78% of agricultural land and accounts for approximately 9% of greenhouse gas (GHG) emissions. The MI Biósfera project, funded by the European Union, is being implemented across several livestock farms in the municipality of Dulce Nombre de Culmí. This study aims to characterize livestock farm management, estimate their carbon sequestration potential, and assess their viability for entering carbon markets. To do so, a literature review was conducted on carbon sequestration potential in humid tropical forests and productive livestock systems. Based on this, carbon sequestration scenarios were developed according to the type of vegetation cover present in ten project farms. Productive and financial analysis showed that farms with greater tree cover or silvopastoral systems achieved higher sequestration rates and greater profitability. In addition, it was found that the regulated carbon market of the European Union offering a reference price of USD 70.00 per ton of carbon in February 2025 represents the most favorable option, provided that a Monitoring, Reporting, and Verification (MRV) system is implemented.