This report is prepared to provide an ex-ante appraisal of the carbon-balance of the “Environmental Services Project” (ESP) of the World Bank, the Global Environment Facility (GEF) and the Swedish International Deveopment Cooperation Agency (SIDA) in Albania. The calculated ex-ante carbon balance is intended to complement conventional ex-ante economic and environmental analyses commonly undertaken in the planning phase of investment projects and development policies. A number of itsoutputs can furtherbe used in financial and economic analyses.This appraisal also provides the impact of the project on other forms of natural capital, such as the increaseinbiomass andsoil organic carbon, which directly affect the climate resilience of landscapes and watersheds.