This booklet is intended to guide extension service advisors and institutions who work with small-scale farmers and foresters with an interest in Carbon Finance and Carbon Projects. Its aim is to support setting-up carbon projects which involve small-scale farmers. Their participation allows them to be involved in the development and implementation of the project, influence the design of the project to generate positive impacts for the farmers and increase their knowledge about carbon finance. The definition of a small-scale farmer differs between and within countries. In most cases it is a farmer who cultivates less than one hectare of land and has diverse sources of livelihood. The guide is structured into five sections: first, the background of climate change is explained (1); second, an introduction is given to how the carbon market works (2); this is followed by an explanation of carbon project development and the timeline and project size to take into account for planning (3); four, costs to be expected during the development of carbon projects are summarised, as well as benefits (4); finally, different funds and grants are presented (5). This booklet will need constant updating, as the political framework is changing very fast, causing changes in legislation, as well as actors, funds and regulations. In addition, the available data, research and knowledge for the development of carbon projects is constantly improving which will facilitate their future upgrowth.