The overall objective of the pilot project is to test and demonstrate the potential for linking reductions in emission intensity in dairy production to carbon credit mechanisms. To this end, the project will support the design of a methodology that will aim at generating carbon credits ensuing from a reduction of emissions per unit milk derived as a consequence of productivity gains in dairy production. Beyond its contribution to global environmental goals, other important and closely related objectives for which the pilot project will offer a valuable tool include economic returns to producer, poverty reduction and food security. The pilot is being led by the International Livestock Research Institute (ILRI), in collaboration with the Ministry of Livestock Development (MLD) and the Food and Agriculture Organisation (FAO). The aim is to be generating a carbon credit revenue stream by June 2013, and to then assess the viability of further expansion. The initial stage of the pilot includes site and partner selection. Sites will be shortlisted based on production system and institutional criteria and a partner farmer group will be selected from this shortlist by November 2012. Concurrently with this process of site selection, the methodology for measuring baseline and mitigated emissions will be developed. The implementation phase of the pilot project involves baseline assessments, buyer engagement as well as developing mitigation strategies for the selected group. Stakeholder engagement, and mitigation support and monitoring will be ongoing elements of the pilot project.