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AbstractThis study focuses on the globally emerging REDD+ programme as a way of tacklingclimate change, and it looks at challenges and implications for implementation at theTanzanian national level and at the local level trough a case study in Kilosa District.Through semi-structured livelihood interviews and literature reviews we map howREDD would fit within existing national institutional structures.With main funding from Norway and NICFI and with support from UN-REDD andFCPF, a REDD Task Force has been created in Tanzania, a Draft Strategy published,and the National Climate Change Steering Committee and the Forest and BeekeepingDivision selected as the main coordinators and managers of REDD in Tanzania. ANational Carbon Monitoring Centre and REDD Trust Fund will be made functional tohandle MRV and the subsequent financial flow. Much work still remains and policyreform and alignment is necessary especially in ensuring clear property rights and anequal benefit sharing system; stakeholder involvement and national leakage,ownership needs to be increased further both horizontally and vertically; and specialcare needs to be placed on capacity building and good governance.TFCG and MJUMITA have started implementing PFM as the basis for a REDDpolicy and they have embarked on establishing village leakage strategy plans toidentify the main drivers of deforestation and identify additional benefits to serve asincentives and reduce forest dependence, which overall contributes to 31% of overallincome and for one village as much as 54%. However, some important REDDcomponents appear to be lacking, and at present. Not much work has been carried outon building MRV capacity, establishing payment mechanisms or dealing with overallleakage. Pastoralists in the area are still not consulted and additional involvementfrom them and other stakeholders and district departments is critical. There are hugechallenges on creating efficient and equitable benefit sharing system as those with thehighest income are very much involved in forest product extraction and otherprofitable income generating activities they may be extra attracted to REDD moneyresulting in elite capture.Many of them are often linked to bigger networks of forest product trade. The areasclosest to Kilosa Town have the most unsustainable forest use, but also the worstconditions for agriculture. Therefore, improving agriculture here could help, whereasthe more remote areas have a much more sustainable use of their forest. They are in alot poorer and have worse livelihood conditions. We expect that the pilot project canimprove livelihood conditions but we worry about its ability to reduce net-carbonemissions, pm account of leakage and high opportunity costs.iii