Voluntary carbon market reform prioritizes Indigenous Peoples, local communities; guardians of ecosystems essential for meeting global climate goals, protecting nature

We are at the start of a new era for the voluntary carbon market (VCM). The CCP label now sets the standard for what high-integrity carbon credits should look like.

We have an unprecedented opportunity to build trust and unlock the financial scale needed to support climate projects that might otherwise never come to fruition. In this time of transition, the VCM has the potential to be a key driver in meeting global climate goals, protecting nature and improving the livelihoods of millions worldwide.

But for the market to truly succeed, Indigenous Peoples and/or local communities must take a leading role in shaping this reformed system. As guardians of critical ecosystems, their involvement is not just beneficial – it’s essential.

A Path to Climate Success Runs Through Indigenous Peoples and/or local communities

Achieving the global target of limiting temperature rise to 1.5 degrees Celsius is impossible without the protection and restoration of our forests and other vital natural carbon sinks. Research shows that the VCM could provide up to one-third of the funding needed for nature-based climate solutions, potentially reducing emissions by 2.7 billion tonnes annually by 2030.

Indigenous Peoples and/or local communities manage 40% of the planet’s ecologically intact landscapes and have protected these resources for millennia.. Their traditional practices and deep-rooted connection with nature make them essential allies in the global effort to reach net zero emissions. However, despite this critical role, they remain some of the most marginalised communities in terms of climate finance, often receiving little benefit from carbon credit projects that affect their lands and resources.

This must change.

A truly high-integrity carbon market will not only safeguard the rights of Indigenous Peoples and/or local communities, but also provide tangible benefits, including sustainable livelihoods, financial profit, and co-ownership of projects. For the voluntary carbon market to deliver its potential, Indigenous Peoples and/or local communities must be engaged as strategic partners in decision-making processes and actively shape the future rules of the market.

The Role of the Engagement Forum

To address this need, the Indigenous Peoples’ and Local Communities’ Voluntary Carbon Market Engagement Forum was created. This independent, self-governing body brings together representatives from diverse regions including Africa, Asia, Latin America, and Oceania, giving Indigenous Peoples and/or local communities a strong voice in shaping the future of the carbon market.

The Engagement Forum was born from a workshop held at COP27 by the Integrity Council for the Voluntary Carbon Market (ICVCM) and The Nature Conservancy. The goal was clear: greater engagement of Indigenous Peoples and/or local communities in the voluntary carbon market. As a result, the Forum will help ensure that the rights and interests of these communities are not only protected but actively promoted within a high-integrity market.

Its mission includes supporting Indigenous Peoples and/or local communities’ participation in the VCM, empowering communities with technical assistance, and ensuring their collaboration with and between market participants. By identifying priorities and opportunities, the Forum will play a crucial role in ensuring the VCM delivers on its promise of climate finance for the world’s most vulnerable populations.

The newly established, self-led Forum will build on the involvement of Indigenous Peoples and/or local communities in the Integrity Council’s work, through the Board and other programmes. Previously such engagement included consultation of the Core Carbon Principles (CCPs). These principles set a global benchmark for high-quality carbon credits and have broken new ground by including robust social and environmental safeguards to ensure the rights and well-being of Indigenous Peoples and/or local communities.

Alongside this ongoing work, the Forum will enable Indigenous Peoples and/or local communities to provide guidance on the development of the CCPs and this market, more broadly. This will ensure that the vision, interests and traditions of Indigenous Peoples and local communities are respected.

Looking ahead, the Forum has identified several key priorities, including:

• Defining the needs of Indigenous Peoples and/or local communities and developing a capacity-building strategy.
• Establishing best practices in benefit distribution, ecological knowledge, and customary laws.
• Removing barriers to engaging with the VCM, including technical, legal, and financial challenges.

Moving Forward with Impact, Integrity, and Collaboration

The science is clear: to prevent the worst impacts of the climate emergency, global emissions must nearly halve by 2030 and reach net zero by 2050. Market mechanisms, such as the voluntary carbon market, are essential for driving private sector investment into climate solutions at the scale we need.

Indigenous Peoples and/or local communities stand at the front lines of climate change. Carbon markets offer them a lifeline, connecting their communities to international investors while protecting and enhancing carbon sinks, growing incomes, and supporting sustainable livelihoods.

In recent years, more climate-ambitious companies have been backing the VCM, showing that when businesses engage with carbon markets, they set more ambitious climate targets. Yet, for the VCM to reach its full potential, it must scale up dramatically, and reform-focused organisations like the ICVCM, VCMI, and GCMU are leading the charge.

To make a material impact, we must build on the existing foundations of reform, prioritising impact, integrity, corporate climate action, and government support. The CCPs provide a solid framework for ensuring high-quality credits, while Indigenous Peoples and/or local communities will continue to play a central role in shaping a carbon market that delivers both environmental and social benefits.

The future of the VCM rests on collaboration, transparency, and a shared commitment to climate action. Time is running out, but together, we can build a market that accelerates the transition to net zero and delivers meaningful, lasting benefits for people and the planet.

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This blog post has been adapted from a speech delivered by Onel Masardule, Co-Chair, ‘Indigenous Peoples and Local Communities VCM Engagement Forum’ for the opening plenary of VCM Day at NYCW.