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Forest carbon projects could potentially enhance the incomes and environment of hundreds of thousands, if not millions, of some of the world’s poorest people, while providing real, climate-significant carbon offsets. But this opportunity will only be realized by adopting suitable rules for the CDM, applying innovations by business and social entrepreneurs to lower transaction costs, and taking public action to reduce risks to both investors and communities. This infobrief provides key points for making forest carbon markets work for low-income producers, and recommendations for the Clean Development Mechanism.