Carbon finance for the forest sector to Achieve the Goals of the Paris Agreement: A training & dialogue with Indigenous Peoples
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Venue: UN Permanent Forum on Indigenous Issues (UNPFII) – virtual side event
Date: Thurs 5 May, 12-2pm EST
Indigenous Peoples have expressed a need for further capacity building on carbon markets to facilitate their informed engagement in them including, to participate in standard-setting, access finance, and exercise their rights. This session aims to provide the space for capacity building on these topics, taking advantage of the convening of Indigenous peoples and local communities during the UN Permanent Forum on Indigenous Issues and the technical expertise from partners of the Forest Declaration Platform.
Provide the IPLC constituency with introductory information and analysis on recent developments in the field of carbon markets for forests as a climate finance mechanism; in particular:
How carbon markets fit into the context of climate finance, including agreements and provisions under Article 6 of the Paris Agreement at the Glasgow climate CoP in 2021?
What carbon markets are and how they can serve NDC implementation and Indigenous peoples' plans?
What initiatives exist to ensure social and environmental integrity of voluntary carbon markets?
Identify areas of interest and capacity gaps of Indigenous peoples with regards to carbon markets.
Support IPLC capacity to assess and engage in credible carbon market opportunities and manage potential challenges.
Present engagement opportunities through existing global standards for carbon markets.
Further event information
The role of carbon markets in climate finance is growing as transactions continue to increase, particularly in the Voluntary Carbon Markets (VCM). According to Forest Trends, as of 2016, offsets equivalent to 1.1 billion metric tonnes of carbon dioxide emissions (BtCO2e) have been transacted voluntarily. Accelerating ambition and implementation of climate action in forests, as part of countries’ goals in their Nationally Determined Contributions (NDCs) is necessary reach net zero emissions. Carbon markets may serve as one mechanism to drive the investment needed at the regional, national, and local levels to achieve these goals. If designed and implemented well, carbon markets represent a potential opportunity to access critically needed finance to support forest conservation and restoration efforts. However, integrity in carbon markets is essential to ensure that the use of carbon credits strengthens – rather than undermines – global action towards achieving the goals of the Paris Agreement. High-integrity carbon markets ensure the application of robust environmental and social safeguards and respecting rights of Indigenous peoples and local communities.
Indigenous Peoples and local communities (IPLCs) are the most effective forest stewards and, therefore, should receive more finance for their continued efforts to protect and restore forests. If Indigenous Peoples, countries, and other stakeholders accessing markets are going to be able to meet demand from private sector buyers, market-based standards, NGOs and local stakeholders alike for higher quality units with demonstrated additional sustainable development impacts, there needs to be greater upfront investment in capacities to build robust and integrated systems to be able to effectively implement in line with expectations. This includes, establishing participatory processes, ensuring appropriate community engagement from design to implementation; ensuring any carbon market arrangement is consistent with the rights and interests of affected Indigenous peoples and local communities; and developing processes for ensuring just and equitable benefit sharing arrangements for Indigenous and local communities.
Further reading: UN-REDD Info Brief: Recognizing and empowering indigenous peoples and Local Communities as critical partners in forest solutions to the climate emergency