The need to mitigate climate change makes production of liquid biofuels a high priority. Substituting fossil fuels by biodiesel produced from Jatropha curcas has gained widespread attention as Jatropha cultivation is claimed to offer green house gas emission reductions. Farmers respond worldwide to this increasing demand by converting forests into Jatropha, but whether Jatropha-based biodiesel offers carbon savings depends on the carbon emissions that occur when land use is changed to Jatropha. This paper provides an impact assessment of a small-scale Jatropha project in Cabo Delgado, Mozambique. The paper outlines the estimated impacts on above and below-ground carbon stocks when land use is changed to increase Jatropha production. The results show that expansion of Jatropha production will most likely lead to the conversion of miombo forest areas to Jatropha, which implies a reduction in above and below-ground carbon stocks. The carbon debts created by the land use change can be repaid by replacing fossil fuels with Jatropha-based biodiesel. A repayment time of almost two centuries is found with optimistic estimates of the carbon debt, while the use of pessimistic values results in a repayment time that approaches the millennium. (C) 2012 Elsevier Ltd. All rights reserved.