There is a limited effort in Ethiopia to study scientifically the ecological features of traditional coffee-based agroforestry systems. This study was initiated to determine the structure, composition, and carbon stock of woody species along an elevation gradient of a traditional coffee-based agroforestry system in Yirgacheffe district, southern Ethiopia. Woody plants’ inventory was conducted in thirty-eight sampling quadrats (20 ∗ 20 m) along five elevation contours and eight transects. Thirty-eight soil samples were taken from randomly selected subplots at 0–30 cm soil depths. In this study 32, woody plant species representing 23 families were recorded. Species richness ranged from 13–17 along the elevation gradient. Woody plant diversity indices appear to have a slight variation with increasing elevation gradient. Shade tree and coffee shrub density, DBH, and height showed significant variations along the elevation gradient. Total aboveground woody biomass carbon stock along elevation gradient ranged from 11.07 to 27.48 Mg·ha−1. Soil organic carbon stock was slightly different across elevation gradients with a mean range of 83.91 to 89.29 Mg·ha−1. These indicate that the agroforestry system has significant potential of storing and enhancing ecosystem carbon stocks across all the elevation gradients. The findings generally show that agroforestry systems in the study area are diverse, structurally complex with significant carbon storage in the soil and woody biomass.

In 1997, the Parties to the UNFCCC (United Nations Framework Convention on Climate Change) adopted the Kyoto Protocol to operationalise the UNFCCC by committing countries included in its Annex 1 (industrialised countries and countries with economies in transition) to emissions reductions targets and establishing mechanisms to achieve those targets. A new commodity was created in the form of emission reductions or removals. Carbon (carbon dioxide) is now tracked and traded like any other commodity. Carbon markets are means by which contracts of sale of emission reductions of greenhouse gases (GHGs) are exchanged. Complexity in the operation of these carbon markets has been increasing day by day, with different mechanisms, programs and assets.REDD + mechanism (Reducing emissions from deforestation and forest degradation and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries) incentivizes a trend change from historic increasing deforestation rates and greenhouse gases emissions. Through REDD+ mechanism developing countries are financially granted for any emissions reductions achieved associated with a decrease in the conversion of forests to alternative land uses.With more than 18 million hectares of forests (including woodlands, Ethiopian Mapping Agency 2013) covering approximately 16 % of its land area, Ethiopia has a huge potential and is among the countries partnered with FCPF (Forest Carbon Partnership Facility) to implement REDD+.An approach to the complexity of carbon markets and to the key mitigation program in the forestry sector through the process initiated in Ethiopia.

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