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Listen to Global South Leaders: The Carbon Market's Key Role in Financing Sustainable Development and Climate Adaptation

woman holding megaphone
A Free, Prior and Informed Consent (FPIC) meeting in Colombia

In the global fight against climate change, Indigenous Peoples, traditional land owners, Local Communities and Afro-descendents (IPLCs and ADs) from the Global South play a vital role in forest protection efforts. Today, less than 1% of climate finance directly reaches Indigenous Peoples, traditional owners and local communities, despite continual research demonstrating that they are the most effective stewards of our planet’s biodiversity and carbon sinks.


The Voluntary Carbon Market (VCM) provides a path forward to revolutionize how climate finance is redistributed. While IP and LCs are not a monolith and there is a diversity of perspectives on carbon markets, there is a growing tide of groups actively seeking involvement in developing projects and shaping carbon market policies and regulations.


It is high time that the raging debates in the Global North stop drowning out the voices of IPLCs. We must honor the self determination of those in the Global South, and listen without bias to the climate solutions they want.


This blog compiles the many and growing Global South IP and LC groups, collaboratives and government entities that are advocating for their inclusion in designing carbon markets and details how their increased participation will strengthen equity in climate finance and forest conservation efforts.


Support from Global South Organizations for the carbon market:


9 May 2023

This open letter in support of REDD+ was signed by the indigenous-led groups and organizations working to support Indigenous Peoples in 40+ countries worldwide. Groups include: FSC Indigenous Foundation, IPACC, Peoples Forests Partnership, AMPB, VNV Advisory Services, NBS Brazil Alliance, FUNDAECO, BaiAni Foundation, ICICO, FECOFUN, Community members from Carbon Tanzania, Kasigau Corridor, Yaeda-Eyasi Project, Yayaysan Konservasi Pesisir Indonesia, and more.


The letter says, “As it stands now, there are very few ways for our communities to access the finance that we are due for our efforts and successes in protecting nature. REDD+ projects provide one of the only proven avenues available to our communities to access the finance required. Those in the Global North must do more to ensure our perspectives are being considered before publishing a story that risks taking away critical resources from our communities based on a narrative that doesn't portray the full picture.”


16 March 2024

Sandeep Choudhury of VNV Advisory, a carbon developer based in India, explains, “You still need the voluntary markets … to fund projects in the emerging countries and funnel money exactly where itʼs needed And I think thatʼs where we missed the point when we go and say the carbon offsetting is a scam. Well, the off setting is a claim. Donʼt put that on me on the supply side. So if you have a problem with somebody claiming, and if that you think is a scam, thatʼs on the buy side. For us … Itʼs really important to value that carbon credit because that allows us finance that otherwise does not exist anywhere.”


20 June 2024

Sokun Hort, Wildlife Alliance’s community engagement manager, wrote a powerful opinion piece for Quantum Commodity Intelligence. Sokun lived through the Khmer Rouge, and witnessed the unimaginable atrocities that took place. He wrote: ‘Some critics chose to ignore both the complexity of the situation on the ground and this overwhelming support, and instead attack the project because it has yet to fix all the problems that my people face. For me, this is heartbreaking. It has been my life’s work to serve the communities of the Southern Cardamoms. Those who drop in from the sky for a week or two and speak to only a few local people, can never understand Cambodia's history, our politics, or the complex realities of life here.’


Sokun also highlights the benefits the Southern Cardamom has brought to the region: ‘Last year, the project’s community development and alternative livelihood programmes received over $2 million of investment, and SCRP’s ecotourism initiatives have turned areas of destruction into thriving destinations - generating a further $1 million in revenue for local people’


2 August 2024


In a LinkedIn article ABCDE Trust Kenya, a Kenyan-based organization advocating for smart environmental practices for sustainable communities, presented their case for the carbon credit market, emphasizing its critical role in forest preservation and socio-economic transformation in the Global South. Their article highlights success stories in East Africa, framing the carbon credit industry as a strategic partnership between the Global North and South.


“As opposed to what most of the naysayers and carbon critics have been parading,” writes ABCDE Trust Kenya, “the carbon market is not a license for the Global North to emit more GHG, but rather a very strategic sustainable transformative partnership arrangement where both the Global North and Global South are working towards the net-zero goal.”


Letters in support of SBTi allowing carbon credits for scope 3 abatement:

The SBTi announced in April this year that it could allow carbon credits for the abatement of some Scope 3 emissions. The guardrails, including limits to carbon credit use and the type of carbon credits that could be used, are still to be confirmed. The announcement was supported by organizations in the global south.


10 June 2024

The West African Alliance on Carbon Markets and Carbon Finance, which represents 10 countries, including Burkina Faso, Cape Verde, Ivory Coast, Gambia, Guinea-Bissau, Guinea, Liberia, Mali, Senegal and Togo, wrote to the SBTi to support the SBTi’s announcement, writing, “Opponents of carbon markets must realise that their actions are hurting us in the Global South; misguided activists, more often than not from countries in the North, are undermining the very causes they claim to support."


21 June 2024

A group of Global South Communities and Small Businesses published a letter, celebrating the SBTi’s announcement. The group stated ‘funding will finally flow to the communities that are

doing the hard work of reducing deforestation loss, restoring grasslands, reforesting mangroves,

sequestering carbon in native forests and improving biodiversity.’ They also write ‘For far too long, our voices have been ignored by the decision makers in London, Brussels, Geneva

and New York. For far too long, despite big promises, the governments of the Global North have

failed to deliver the requisite funding to the communities. Carbon markets are an important and

powerful tool to create the right incentives required to mitigate emissions globally’.


04 July 2024

The PFP was formed to support forest communities’ call for their right to participate equitably in

climate and conservation finance, if they choose to do so. The PFP supports carbon credits being used fort Scope 3 abatement under the SBTi, as long as strict criteria are met. The PFP wrote ‘The Scope 3 emissions of some companies are larger than the total emissions of our members’ nations… Our members, the owners and the stewards of the territories, have ensured the conservation of forests and natural grasslands and its biodiversity for centuries in the fight against climate change at significant cost. The eventual decision on whether to allow carbon credits for the abatement of Scope 3 emissions will impact the flow of financial resources that come to our members’ voluntary carbon market projects, impacting the future of their people.’



Global South Collaboratives strengthening equity for carbon markets:


Africa


The ACMI aims to capture the potential of voluntary and compliance carbon markets in Africa. They remove barriers to growth, scale the demand for carbon credits from African projects, and support carbon market stakeholders.


WAA promotes carbon markets in its member countries. One of WAA’s key missions is to build capacity in the region, so that member countries can participate in Article 6 negotiations and pilot projects.


EAA plays a similar role to the WAA and consists of seven East African countries.


The EAA and WAA work collaboratively together, sharing lessons learned and coordinating on issues.


Since the REDD+ process began in DRC, civil society has organized into a national platform, the Renovated REDD+ Working Group (in French, Groupe de Travail Climat REDD Rénové, or GTCRR), to provide a powerful and legitimate entity with a strong, coherent and credible voice for civil society to take an active part in this process in the DRC. The Civil Society Support Programme, funded by CAFI through the DRC's National REDD+ Fund, supports civil society representation through GTCRR and in its role as a conduit for information, an advocate, observer and whistle blower. It provides the network with a solid legal and institutional foundation and a targeted intervention strategy for REDD+ investments.


Latin America


The Nature-based Solutions Brazil Alliance is a membership organization consisting of project developers, non-governmental organizations, and impact investors. The Alliance drives best practices in Brazilian carbon markets, advocates for the role of nature-based solutions, and increases awareness of the role of nature-based solutions, including through training and webinars.


Based in Colombia, Asocarbono is a not-for-profit membership organisation focused on developing strong carbon markets in the country. They bring together stakeholders to shape the development of carbon markets and ensure that carbon markets contribute to the sustainable development of Colombia Asocarbono hosts courses on topics such as REDD+ and the energy sector.


Wildlife Works Colombia, as a member of ASOCARBONO, participates in the Regulatory and REDD+ Committee where working groups on the application of safeguards will be developed over the coming months, with a focus on strengthening governance and benefit distribution."


Indonesia / South East Asia


AACM promotes the scaling of both voluntary and compliance carbon markets in ASEAN member countries. They provide technical assistance and build capacity throughout the region.


APHI intends to develop and improve its members' businesses according to the regulatory framework to increase the sustainable value of forest management while encouraging the creation of competitiveness in the forestry industry business.


International

The Peoples Forests Partnership (PFP) is a membership organisation, that aims to drive finance directly to Indigenous Peoples, traditional owners and local communities and Afro-descendants

(IP, LC and AD). Some members plan to use carbon markets to access this finance, The PFP builds the carbon market capacity of members and makes sure members can participate equitably in carbon markets.


Contact us to submit an organization, letter, for inclusion in this list.

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