Reduced Emissions from Deforestation and forest Degradation (REDD) and the enhancement of forest stocks within a REDD+ framework or under the Clean Development Mechanism (CDM) can be powerful instruments for West African countries with high deforestation rates for income generation and to shape landscapes and increase resilience to climate change through provision of ecosystem services. Much of the discussion on REDD has centred on tropical forests. Yet, savannas, shrub- and grasslands cover large areas of the African landmass and can make a significant contribution to global greenhouse-gas mitigation efforts. This Work Package aims to assess the potential impacts of carbon markets on forest cover and income generation with a special focus on poverty alleviation effects in West African savanna areas. We do so by determining spatially explicit carbon mitigation potential, opportunity and transaction costs for alternative national policy options that can be applied to implement the mechanism under consideration. Special attention will be given to poverty implications. We include the benefits from non-carbon forest ecosystem services into our assessment by estimating their monetary values. The WP is well integrated with a number of other WPs within the Core Research Program. It includes a strong capacity building component by involving African students and offering courses to the WASCAL graduate schools.