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A fraction of the cumulative CO2 emissions remains in the atmosphere, leading to global warming. One way to reduce CO2 concentrations is to sequester the atmospheric carbon in trees and soils through plant. Agroforestry, defined as land use combining trees and crops, appears to be part of the solution, and has received increased attention due to its atmospheric carbon dioxide sequestration capacity. Cocoa production, which has a high global demand and is becoming increasingly important in Uganda, can typically take place in agroforestry schemes. This study focuses on a sample of cocoa farms located in Central Uganda (Mukono), and aims to assess the potential amounts of carbon that could be additionally stored if cocoa farmers convert their non-agroforestry land cover to agroforestry systems. Moreover, it evaluates the associated economic compensation that each farmer could receive for such a conversion. Results showed that conversion of short-cycle crop land to shaded agroforestry systems could result in an increase of 5.3% per unit area of the actual carbon stock. Farmers could receive US $137.82 ha− 1 if the conversion to agroforestry is done in 20 years, and 1.5 times more if done in 5 years. Carbon storage benefits on a global scale, decreasing global warming, but also on a local scale to farmers, bringing several environmental and socioeconomic co-benefits.