At the Climate Pledge Hub at New York Climate Week, the LEAF Coalition brought together businesses, forest governments and Indigenous Peoples and local communities to discuss how the private sector can mobilize corporate funding at the scale needed to end deforestation by 2030. Focusing on the Amazon rainforest, the panel and guests discussed the vital need for Indigenous rights and inclusion, the growing impacts of climate change and how investment via the voluntary carbon market (VCM) can provide part of the solution.
Here are our five key takeaways from the event:
Key Takeouts
- Inclusion of Indigenous Peoples and Local Communities is Critical to a Successful Voluntary Carbon Market
A consistent theme throughout the event was the essential role that Indigenous Peoples and Local Communities (IP&LCs) play in the success of carbon credit programmes, particularly in Brazil. Panellists emphasized that sustainable development initiatives in regions like the Amazon must prioritize IP&LC rights, with strict safeguards in place to ensure their involvement. Carbon markets must not only preserve the environment but also respect the cultural and economic rights of those living in and working to protect the forests.
- Carbon Credits Can Finance Sustainable Development
Brazilian states, including Acre and Pará, are laying the groundwork for generating carbon credits under the Jurisdictional REDD+ (JREDD+) framework. The finance generated through these credits has the potential to support sustainable development, benefiting both the environment and local economies as well as the global climate. The panel highlighted how corporate involvement in the VCM can provide much-needed funding to protect the Amazon while creating economic incentives for local communities. However, ensuring transparency and directing investments effectively are key challenges, as pointed out by one of the panellists: “There is a lot of money from the private sector for investments in carbon credits, but there needs to be a correct direction to maintain the integrity of the process.”
- Corporate Engagement with High-Integrity Carbon Credits is Essential
JREDD+ credits from Brazil can support corporate climate commitments, but these strategies must be rooted in high integrity and transparency. The fear of greenwashing and the potential reputational risks of being associated with poorly managed projects was a recurring concern among corporates. This underscores the importance of clear, robust methodologies, strong governance for carbon markets and respect for the rights of IP&LCs. During table discussions at the event, companies shared their strategies to reduce Scope 3 emissions, and many shared their eagerness to engage with the VCM to take action beyond their own value chain. Previous wariness has been because of historical integrity concerns but investment in high integrity JREDD credits was seen as a robust and reliable option.
- The Amazon is Under Immediate Threat, and Action is Urgent
Panellists warned that the Amazon is under unprecedented pressure from deforestation, land clearing, mining, and referenced the current fires burning across the Amazon basin. Without immediate intervention and alternative economic incentives for local communities, the consequences will be catastrophic for people, nature and climate. The conversation highlighted the need to reverse this destructive cycle by investing in projects that protect forests and empower communities.
- Corporate Funding Needs to be Mobilized at Scale
A significant challenge highlighted in the discussions was how to mobilize corporate funding at the scale necessary to meet the goal of ending deforestation by 2030. Partnerships with governments and NGOs were seen as crucial for adding credibility to these efforts, while education and awareness campaigns were necessary to help corporates make the internal business case for investment. The panel also stressed that the VCM should be viewed as an integral part of corporate strategies, not just an add-on. Suppliers play a major role in this equation, as deforestation is often linked to supply chain practices, which must be addressed in tandem.
Overall, both the panel and discussions provided a clear call to action: protecting the Amazon and addressing global deforestation requires an urgent, coordinated effort between corporates, governments, and IP&LCs and one mechanism that can help channel the urgent finance at the scale needed, is a transparent and high-integrity carbon market.
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