This publication reflects part of FAO's work on soil carbon sequestration within the framework of its programme on the integrated planning and management of land resources for sustainable rural development. The report presents a comprehensive analysis of the scientific aspects and potential for carbon sequestration in drylands – some of the most soil-degraded and impoverished regions of the world. It is based on case studies carried out across different landuse and management systems in several distinctive dryland areas. The report includes an overview of the policies and clarification of the different economic incentives regarding soil carbon sequestration in order to determine how available resources can be used and specific programmes can be implemented to improve the food security and rural livelihoods in drylands.