The CDM/AR project in the Guangxi Zhuang Autonomous Region China, established in 2006, focuses on carbon sequestration and afforestation. Over 4.000 hectares of multifunctional trees were planted in waste land. Rewards flow from buyers of Certified Emission Reductions (CER) to the Afforestation Entities (AE) as well as to the local households. Poor households benefit to the same degree as well-off households, since the wastelands belong to the collective, not to individuals. They benefit in 6 ways: rent from AE, incomes from selling turpentine, firewood and CERs, and incomes from participating in tree planting and management activities. The project’s sustainability may be point of attention given the low investment by the AEs.