Dissertation (MSC Natural Resources Management)A study was undertaken aiming four villages of Kilago, Igung'hwa, Ngulu and Mhongolo of Kahama District, Shinyanga Region. The study objective was to determine carbon trading mechanism in semi-arid areas of north-western Tanzania using Kahama District as a case study. Specific objectives included1) assessing community involvement in carbon trading mechanisms under REDD+ initiatives; 2) assessing the cost-benefit mechanisms towards adoption of REDD+; and 3) analyzing important strengths, weaknesses, opportunities and threats (SWOT) towards implementation of REDD+ in community based forests. Majority of respondents (84.0%) were aware of the REDD+ initiatives in forest conservation through in-situ conservation and agroforestry. About 60.0%of the overall sample respondents were not aware on carbon markets and marketing channels, because carbon trading is a new concept across the study villages. Also there was no respondent who had received any payment for selling carbon credits. The costs related to forest conservation under REDD+ initiatives were associated with buying, planting tree seedlings and security of the ngitili. REDD+ initiatives provide villagers with multiple benefits such as wood supply for domestic consumption and acting as a source of household income. The strengths of adoption of REDD+ initiatives in forest conservation across the study villages include existence of good village governance; forest protection by-laws, policies and regulation. The weaknesses of REDD+ initiatives in forest conservation across the study villages include drought resulting from unpredictable rainfall; low forest conservation education within the community; inadequate community awareness of the functioning of REDD+ initiatives and climate change. The opportunities of adoption of REDD+ initiatives in forest conservation across the study include existing current political will by the government on implementation of REDD+ and the associated climate change mitigation measures; and high willingness among donors (CARE)to fund carbon trade across the study villages; REDD+ project initiatives; energy saving technology via TATEDO; beekeeping practice; existing extension services. Threats of adoption of REDD+ initiatives in forest conservation across the study include wild animals like lion, hyena; land use conflicts; field/bush fires; pests and diseases; change in donor policies (reliance on donor fund) and reliance on external markets for carbon. It is recommended that efficient alternative energy sources and efficient utilization of biomass such as improved stoves, improved charcoal kilns, and the use of solar power and biogas should be promoted to reduce pressure on forests.