This study on the socio-economic effects of four carbon sequestration projects in Brazil and Bolivia examines how these projects contribute to local development processes and what benefits accrue to local people. It draws on a number of lessons relating to project design, social networks, economic impacts, and relations with local communities. In particular, it stresses the importance of early information exchange before project formulation to help reflect local social demands. It goes on to make important recommendations for CDM procedures, emphasising that local sustainable development should be a central part of CDM projects' eligibility criteria and should be given equal weight to those referring to additionality.