Indigenous Peoples and local communities must be shareholders in a high-integrity voluntary carbon market

COP29, billed as the ‘finance COP,’ underscores the urgent need to channel climate funds directly toward projects at the local level that can have the greatest impact. Indigenous groups in the Global South have repeatedly highlighted that carbon credits are one of the most powerful tools for channelling finance to their communities, who play a key role in safeguarding our planet’s critical ecosystems. However, for these investments to be effective, an approach that prioritises Indigenous Peoples and/or local communities rights, sovereignty and leadership is essential.

Indigenous Peoples and/or local communities are the stewards of some of the world’s most critical ecosystems, managing 40% of the planet’s ecologically intact landscapes. The role of these front-line communities in safeguarding biodiversity and ensuring ecosystem resilience cannot be overstated.

Yet for too long Indigenous Peoples and/or local communities have been sidelined in global climate solutions, their rights overlooked, and their knowledge undervalued.

As we look towards COP29, a focus on inclusive, equitable climate solutions has never been more critical. The Integrity Council is committed to ensuring that Indigenous Peoples and/or local communities are not just participants but key decision-makers in the reformed voluntary carbon market (VCM).

Through our Core Carbon Principles (CCPs), we have set the first independent global standard for integrity, ensuring that Indigenous Peoples and/or local communities’ rights, interests, livelihoods, and leadership are protected and elevated in every area of the voluntary carbon market (VCM).

Ensuring Indigenous Peoples and/or local communities are key stakeholders

A high-integrity VCM must not only be built on the protection and promotion of the rights and interests of Indigenous Peoples and/or local communities, but also actively involve them as key stakeholders and shareholders in the market.

This is integral because projects that incorporate the Traditional Ecological Knowledge and perspectives of Indigenous and/or local communities are inherently more stable and sustainable, leading to better environmental outcomes, enhanced community well-being, and improved operational resilience — a true triple win.

Many Indigenous Peoples and/or local communities already host, or are potential hosts for, carbon credit-generating projects, but it is essential that these projects do not exploit their resources or undermine their sovereignty. Instead, they must contribute to the long-term well-being of these communities.

The CCPs break new ground by requiring all new projects to implement robust social and environmental safeguards, including the requirement for free, prior, and informed consent from Indigenous Peoples and/or local communities.

This ensures that projects respect the sovereignty of these communities and involve them in decision-making from the outset. In addition, the CCPs demand transparency in how projects share benefits, ensuring that revenues and resources are equitably distributed, directly supporting the livelihoods of Indigenous Peoples and/or local communities.

Integrating Indigenous Peoples and/or local community leadership

At the Integrity Council, we recognise that Indigenous Peoples and/or local communities must not only benefit from the VCM but also help shape it. That’s why we have created the VCM Engagement Forum – a self-led body designed to ensure that Indigenous Peoples and/or local communities have a strong, independent voice in the development of the VCM. This forum empowers Indigenous Peoples and/or local communities to contribute to policy decisions, advise on the Assessment Framework, and ensure that their rights and interests are fully represented in the market.

The Engagement Forum also plays a pivotal role in promoting capacity building within Indigenous and/or local communities, helping them engage more effectively with the VCM and unlock new income opportunities. One of the Forum’s priorities is to ensure that Traditional Ecological Knowledge and customary laws are respected and integrated into market mechanisms, ensuring that the wisdom of these communities is not lost but actively contributes to climate solutions.

In parallel, our governance framework includes three Board seats reserved for representatives from Indigenous Peoples and/or local communities, ensuring that their perspectives are embedded in all our decision-making processes.

This commitment to inclusion and representation was shaped by extensive consultations with Indigenous groups and other stakeholders from around the world, particularly from the Global South.

Delivering Tangible Benefits to Indigenous Peoples and/or local communities

One of the fundamental priorities of the Integrity Council is unlocking private climate finance for Indigenous Peoples and/or local communities. Through the voluntary carbon market, these communities can access much-needed funds that support both environmental and socio-economic development. The CCPs are designed to generate significant economic opportunities for Indigenous communities, creating income through the sale of carbon credits while also preserving biodiversity and promoting sustainable practices.

As we ratchet up ambition and increase the market’s potential to rapidly cut global emissions, a Continuous Improvement Work Program (CIWP) is underway to further enhance the criteria for sustainable development and environmental and social safeguards in future versions of the Assessment Framework.

This program will ensure greater transparency around benefit-sharing arrangements and wider reforms relating to the rights and interests of Indigenous Peoples and/or local communities, holding projects to an even higher standard, with the goal of delivering more meaningful, measurable benefits.

We know there is no shortcut to high-integrity. As we continue to implement the Core Carbon Principles, we remain committed to raising the standards of the VCM. We will continue to collaborate with Indigenous Peoples and/or local communities, and a broad range of stakeholders to ensure that the VCM not only contributes to global emissions reductions but also delivers lasting benefits to the communities on the front lines of the climate crisis.

Protecting the Planet, Promoting Justice

Climate justice demands that those who are most affected by climate change are not just compensated but empowered to lead the charge on finding solutions. Indigenous Peoples and/or local communities are at the heart of ecological preservation. Through the VCM, we have an opportunity to ensure that they are also at the heart of global climate finance.

The Integrity Council is proud to stand with Indigenous Peoples and/or local communities, committed to a future where their rights and interests are protected, their voices are heard, and their contributions to climate solutions are recognised and rewarded.

As we approach COP29, our message is clear: a high-integrity VCM is only possible if it is built on the foundation of respect for Indigenous rights, cultural knowledge, and ecological stewardship.

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The Integrity Council recognises Indigenous Peoples and / or local communities as different and distinct peoples with discreet rights and interests as expressed in international and national instruments, and in traditional laws.

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