Globally there are more than 120 million pastoralists who are custodians of more than 5000 Mha of rangelands, which store up to 30% of the world’s soil carbon. Many pastoralists are poor. In 2007 carbon markets made transactions worth more than US$64 billion. The best available estimates suggest that improved rangeland management has a biophysical potential to sequester 1300-2000 MtCO2e worldwide up to 2030. This study examines the role that pastoralism can play in the sequestration of carbon, and assesses the feasibility of accessing carbon markets to support sustainable resource use and livelihood development among pastoralists. This report also explains carbon markets and how they work, and describes the basic requirements for designing a carbon finance project.