This Report documents watershed project efforts to preserve land cover over the region and to reduce the loss of vegetation cover, which contributes to future mitigation of climate change. The study (i) reviews past and future change in vegetation cover in the EN watershed and documents interventions by the Eastern Nile Watershed Management (ENWSM) project; (ii) selects and delivers a modeling tool to estimate carbon emissions associated with natural vegetation in the EN; (iii) applies the tool to estimate the carbon balance for degraded conditions as well as healthy managed conditions, in order to estimate effective reduction in emissions due to watershed management in the EN region;(iv) defines a road map to engage with the CDM process.