Farmers in Ethiopia have been vulnerable to climate change in recent decades. In the face of this change, farmers have managed agroforestry systems to maintain their livelihoods. However, studies exploring the role of agroforestry in reducing household vulnerability are lacking in Northwestern Ethiopia. The objectives of the study were to (i) investigate households’ livelihoods vulnerability to climate change in Northwestern Ethiopia; (iii) assess the role of agroforestry in mitigating the negative impacts of climate change on farmers livelihoods. Key informant interviews, in-depth interviews, household surveys (387), and focus group discussions were used to collect the data. Descriptive statistics, principal component analysis, the X2-test, and the t-test were run to analyze the data. The findings revealed that households are vulnerable to rising temperatures, rainfall variability, frost, disease and pests, erosion, hailstorms, price hikes, wildlife damage to crops, and health stress. Agroforestry non-practitioners had a higher livelihood vulnerability index (LVI) (0.42 ± 0.081) than practitioners (0.46 ± 0.079). The Livelihood Vulnerability-Intergovernmental Panel for Climate Change Index (LVI-IPCC) showed that AF non-practitioners had a higher exposure (0.58), sensitivity (0.54) index, and a lower adaptive capacity index (0.44) than the exposure (0.34), sensitivity (0.38), and adaptive capacity index (0.51) of practitioners. Plant diversity, income level and diversity, livelihood activities, social network, and food security status of farmers were improved by agroforestry. Farmers were therefore less susceptible to adverse climate shocks. Thus, the AF system could be part of future adaptation and resilience programs that provide dependable tools to minimize households’ vulnerability to climate shocks. However, management guidelines, such as understanding local ecosystems, setting clear objectives, choosing suitable species, planning for diversity, considering the market, and regular maintenance and monitoring, are needed for agroforestry to improve its contribution.
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