This paper suggests a novel model for analysing carbon sequestration activities in dry land agriculture considering the water-food-energy-climate nexus. The paper is based on our on-going studies on photovoltaic water pumping (PVWP) systems for irrigation of grasslands in China. Two carbon sequestration projects are analysed in terms of their water productivity and carbon sequestration potential. It is concluded that the economic water productivity, i.e. how much water that is needed to produce an amount of grass, of grassland restoration is low and that there is a need to include several of the other co-benefits to justify the use of water for climate change mitigation. The co-benefits are illustrated in a nexus model including (1) climate change mitigation, (2) water availability, (3) downstream water impact, (4) energy security, (5) food security and (6) moisture recycling. We argue for a broad approach when analysing water for carbon sequestration. The model includes energy security and food security together with local and global water concerns. This makes analyses of dry land carbon sequestration activities more relevant and accurate. Without the nexus approach, the co-benefits of grassland restoration tend to be diminished. (c) 2014 Elsevier Ltd. All rights reserved.