Fair Benefit Sharing in Carbon Markets: From Practice to Policy
Carbon markets are growing, and many nature-based carbon projects are located on lands and territories owned, used or governed by Indigenous Peoples as well as local communities. Ensuring that these communities participate meaningfully and benefit fairly is important both for their rights and for the long-term integrity of carbon markets.
In practice, recognition of land and resource rights, community participation in project design and governance, and the transparency of benefit-sharing arrangements vary considerably across contexts. Research commissioned by the Indigenous Peoples and Local Communities Engagement Forum and conducted by Namati and Climate Focus examines these issues and identifies options for improvement.
As countries develop or refine carbon market frameworks, there is a timely opportunity to share lessons and build common understanding. This dialogue will bring together governments, Indigenous Peoples, local communities and other stakeholders to exchange perspectives and explore practical policy options that reflect different national contexts and support communities as genuine partners in carbon projects.
Objectives
Discuss the main challenges Indigenous Peoples as well as local communities face in carbon market benefit-sharing arrangements.
Provide a constructive and trusted space for governments, Indigenous Peoples, local communities and other market actors to exchange experiences, lessons learned and good practices.
Identify practical policy options, adaptable to national contexts, that support meaningful participation and fair benefit-sharing in carbon projects.
Ensuring that both Indigenous Peoples and local communities are genuine partners, with secure rights, meaningful participation and a fair share of benefits, is central to the integrity and legitimacy of carbon markets. The practical actions identified through the dialogue can inform continued engagement on high-integrity, rights-based carbon markets during and beyond COP31.
About the Engagement Forum
The Indigenous Peoples and Local Communities Engagement Forum is a unique self-governed space built for, and led by, Indigenous Peoples as well as local communities. The Forum’s core aim is to ensure that the rights and interests of both Indigenous Peoples and local communities are central in a high integrity carbon market. The Forum holds a neutral position on carbon markets and seeks to enable communities to self-strengthen so that they can choose whether to engage in the market in an informed way – not as beneficiaries but as co-owners and equal partners. The Forum is hosted by the Integrity Council for the Voluntary Carbon Market (ICVCM) but operates independently.
To read more about the Forum, please visit: https://indigenousengagementforum.org/