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In terms of Efficiency there are also challenges. While establishing PFM is seen as aprerequisite for the pilot project it has become a very time consuming and expensivematter both in raising awareness among the local population and establishing newland rights and land use practices. The complex issues of REDD has resulted infurther issues of efficiency with the need for more extensive capacity building andtraining if the local population are to be able to carry out the required tasks for REDD,such as MRV and financial management. The lack of overall district governmentinvolvement might also hamper the efficiency as lack of legitimacy or lack ofcoordination of activities might persist. As a final point we are wary of the efficiencyof the forest areas in general, as firstly having many small forest areas to monitor andmeasure will increase the transaction costs, however equally important, the state andtype of the forests that are present in much of the study area – Miombo Woodlands ina fairly good state – is less able to store as much carbon, which again can result ininsufficient carbon payments.Concerning Equity the main challenge we see is in terms of avoiding elite capture asthere does not seem to be any specific measures to avoid it. We have to emphasizethough that TFCG and MJUMITA overall seem to be very aware of the poorestpeople in the communities and attempt at including them as much as possible both indecision-making, participation, and ensuring that benefits also reach them.Finally, while considering the Co-Benefits we feel the project might be able toimprove livelihood conditions through the activities they have planned. As incentiveswill be provided, firstly through the “leakage package” and secondly through carbonpayments, this can motivate the community to continue to manage and use their forestin a sustainable manner, thus result in increased biodiversity. However we are wary ofhow equitable the benefits will be shared, as the added pressures from REDD mightbe difficult to handle even though the experience of both TFCG and MJUMITA inprevious PFM activities have made them very equip at taking into consideration localcontexts and utilizing local participation as a way of ensuring a pro-poor approach. Inaddition as the REDD specific activities are new to them and given the challenges asdiscussed in this chapter, we are also very concerned with whether or not the aim ofreducing emissions from deforestation and forest degradation will be achieved.279