To Protect or Restore? The Big Forest Question

Advancing High-Integrity Markets for Climate, People and Nature

On Nature, Indigenous peoples and Gender day at COP29 in Baku, Emergent, the LEAF Coalition and the U.S. State Department hosted a session exploring the critical issue of advancing high social integrity in voluntary carbon markets (VCMs) at the U.S. Center pavilion.

Against the backdrop of increasing global attention on the role of forests in mitigating climate change, the panel brought together voices from across the sector including LEAF Coalition participants, Ecuadorian government representatives, Ecuadorian Afro-descendants and civil society. The session emphasized the urgent need to align climate finance mechanisms with social justice, equity, and inclusion for Indigenous Peoples, Local Communities (IP&LCs), and Afro-descendant groups.

The discussion underscored that high social integrity is not merely a secondary objective but a prerequisite for the success and credibility of carbon markets. The speakers shared insights into the challenges, opportunities, and pathways for ensuring that these markets uphold rights, foster inclusion, and deliver tangible benefits to the communities most affected by climate change and biodiversity loss.

1. Inclusion is the Foundation of High Integrity

The speakers universally stressed that inclusion is fundamental to achieving high social integrity in the VCM.

Inés Morales, Palenquera Mayor of CANE, representing Afro-descendant communities in Ecuador, highlighted the historical exclusion of her people and called for recognition and equity:

“We need inclusion based on recognition. We cannot be seen as mere local communities; we are Afro-descendants (ADPs) with our own cultures, lifestyles, and histories. To be acknowledged is to be included.”

Santiago Garcia, Senior Manager, IPLC & Conservation Partnerships, Forests from the Environmental Defense Fund echoed this, urging markets and governments to actively listen to IP&LCs and ADPs:

“Indigenous Peoples and local communities bring diverse worldviews and approaches to life. For integrity to succeed, we must be flexible, adapt, and walk the path together.”

2. Equitable Benefit Sharing is vital

A recurring theme was the necessity to ensure that revenues generated from carbon markets reach IP&LCs, ADPs and other communities.

Tore Langhelle, Senior Adviser at NICFI explained:

“In Ecuador, 70% of climate finance under our programs has been directed to IP&LCs, supporting land tenure and sustainable management. Funding IP&LCs is one of the most efficient ways to protect tropical forests.”

Inés Morales also illustrated how inclusive benefit-sharing plans could transform Afro-descendant and Indigenous communities:

“Access to these funds allows us to address urgent issues like flooding and damaged water systems while empowering our people to adapt to climate impacts.”

3. IP&LCs and ADPs are Partners, Not Passive Beneficiaries

The panel emphasized that IP&LCs and ADPs are not merely stakeholders but central partners in forest conservation. Frances Seymour - Senior Advisor on Forests to the office of the Special Presidential Envoy for Climate underscored this point:

“No rights, no REDD. Indigenous Peoples and local communities must be included in decision-making, not treated as passive beneficiaries. They are proactive partners who shape policy and action.”

5. High Integrity Standards with Safeguards need to be the bedrock of the VCM
Standards like the ART TREES framework were highlighted as essential for ensuring high environmental and social safeguards. Langhelle noted:

“LEAF’s reliance on ART TREES ensures that carbon credits meet stringent criteria, protecting rights and guaranteeing credible reductions in emissions.”

This commitment to robust safeguards was framed as a pathway to building trust and scalability in carbon markets.

5. Capacity Building and Climate Resilience

The session also addressed the importance of strengthening IP&LCs and ADPs capacity to engage with carbon markets. Garcia emphasized the role of EDF in bridging gaps:

“Our role as facilitators is to establish dialogue, provide technical assistance, and empower IPLCs to be decision-makers in carbon market processes.”

Morales shared the tangible impacts of such efforts:

“Through partnerships like LEAF, we can not only protecting our ecosystems but also build a foundation for sustainable development that reflects our community’s needs and aspirations.”

Advancing High-Integrity Markets for Climate, People and Nature

Key Takeouts

1. Inclusion is the Foundation of High Integrity

The speakers universally stressed that inclusion is fundamental to achieving high social integrity in the VCM.

Inés Morales, Palenquera Mayor of CANE, representing Afro-descendant communities in Ecuador, highlighted the historical exclusion of her people and called for recognition and equity:

“We need inclusion based on recognition. We cannot be seen as mere local communities; we are Afro-descendants (ADPs) with our own cultures, lifestyles, and histories. To be acknowledged is to be included.”

“Indigenous Peoples and local communities bring diverse worldviews and approaches to life. For integrity to succeed, we must be flexible, adapt, and walk the path together.”

2. Equitable Benefit Sharing is vital

A recurring theme was the necessity to ensure that revenues generated from carbon markets reach IP&LCs, ADPs and other communities.

Tore Langhelle, Senior Adviser at NICFI explained:

“In Ecuador, 70% of climate finance under our programs has been directed to IP&LCs, supporting land tenure and sustainable management. Funding IP&LCs is one of the most efficient ways to protect tropical forests.”

Inés Morales also illustrated how inclusive benefit-sharing plans could transform Afro-descendant and Indigenous communities:

“Access to these funds allows us to address urgent issues like flooding and damaged water systems while empowering our people to adapt to climate impacts.”

3. IP&LCs and ADPs are Partners, Not Passive Beneficiaries

The panel emphasized that IP&LCs and ADPs are not merely stakeholders but central partners in forest conservation. Frances Seymour - Senior Advisor on Forests to the office of the Special Presidential Envoy for Climate underscored this point:

“No rights, no REDD. Indigenous Peoples and local communities must be included in decision-making, not treated as passive beneficiaries. They are proactive partners who shape policy and action.”

5. High Integrity Standards with Safeguards need to be the bedrock of the VCM
Standards like the ART TREES framework were highlighted as essential for ensuring high environmental and social safeguards. Langhelle noted:

“LEAF’s reliance on ART TREES ensures that carbon credits meet stringent criteria, protecting rights and guaranteeing credible reductions in emissions.”

This commitment to robust safeguards was framed as a pathway to building trust and scalability in carbon markets.

5. Capacity Building and Climate Resilience

The session also addressed the importance of strengthening IP&LCs and ADPs capacity to engage with carbon markets. Garcia emphasized the role of EDF in bridging gaps:

“Our role as facilitators is to establish dialogue, provide technical assistance, and empower IPLCs to be decision-makers in carbon market processes.”

Morales shared the tangible impacts of such efforts:

“Through partnerships like LEAF, we can not only protecting our ecosystems but also build a foundation for sustainable development that reflects our community’s needs and aspirations.”

Wrapping up the event, Ruth Davis, UK Nature Envoy concluded that the challenge now lies in making high social integrity the norm, as carbon markets are scaled to ensure that they truly serve both people and the planet.

“No approach to mobilizing finance is meaningful unless it responds to the needs of local people who do the work of forest conservation.”

Stay in the Loop

Join Us

Advancing High-Integrity Markets for Climate, People and Nature

Key Takeouts

1. Inclusion is the Foundation of High Integrity

The speakers universally stressed that inclusion is fundamental to achieving high social integrity in the VCM.

Inés Morales, Palenquera Mayor of CANE, representing Afro-descendant communities in Ecuador, highlighted the historical exclusion of her people and called for recognition and equity:

“We need inclusion based on recognition. We cannot be seen as mere local communities; we are Afro-descendants (ADPs) with our own cultures, lifestyles, and histories. To be acknowledged is to be included.”

“Indigenous Peoples and local communities bring diverse worldviews and approaches to life. For integrity to succeed, we must be flexible, adapt, and walk the path together.”

2. Equitable Benefit Sharing is vital

A recurring theme was the necessity to ensure that revenues generated from carbon markets reach IP&LCs, ADPs and other communities.

Tore Langhelle, Senior Adviser at NICFI explained:

“In Ecuador, 70% of climate finance under our programs has been directed to IP&LCs, supporting land tenure and sustainable management. Funding IP&LCs is one of the most efficient ways to protect tropical forests.”

Inés Morales also illustrated how inclusive benefit-sharing plans could transform Afro-descendant and Indigenous communities:

“Access to these funds allows us to address urgent issues like flooding and damaged water systems while empowering our people to adapt to climate impacts.”

3. IP&LCs and ADPs are Partners, Not Passive Beneficiaries

The panel emphasized that IP&LCs and ADPs are not merely stakeholders but central partners in forest conservation. Frances Seymour - Senior Advisor on Forests to the office of the Special Presidential Envoy for Climate underscored this point:

“No rights, no REDD. Indigenous Peoples and local communities must be included in decision-making, not treated as passive beneficiaries. They are proactive partners who shape policy and action.”

5. High Integrity Standards with Safeguards need to be the bedrock of the VCM Standards like the ART TREES framework were highlighted as essential for ensuring high environmental and social safeguards. Langhelle noted:

“LEAF’s reliance on ART TREES ensures that carbon credits meet stringent criteria, protecting rights and guaranteeing credible reductions in emissions.”

This commitment to robust safeguards was framed as a pathway to building trust and scalability in carbon markets.

5. Capacity Building and Climate Resilience

The session also addressed the importance of strengthening IP&LCs and ADPs capacity to engage with carbon markets. Garcia emphasized the role of EDF in bridging gaps:

“Our role as facilitators is to establish dialogue, provide technical assistance, and empower IPLCs to be decision-makers in carbon market processes.”

Morales shared the tangible impacts of such efforts:

“Through partnerships like LEAF, we can not only protecting our ecosystems but also build a foundation for sustainable development that reflects our community’s needs and aspirations.”

Wrapping up the event, Ruth Davis, UK Nature Envoy concluded that the challenge now lies in making high social integrity the norm, as carbon markets are scaled to ensure that they truly serve both people and the planet.

“No approach to mobilizing finance is meaningful unless it responds to the needs of local people who do the work of forest conservation.”

Stay in the Loop

Join Us

5. High Integrity Standards with Safeguards need to be the bedrock of the VCM
Standards like the ART TREES framework were highlighted as essential for ensuring high environmental and social safeguards. Langhelle noted: