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Setting the scene
“…Parties should, when taking action to address climate change, respect, promote and consider their respective obligations on human rights, the right to health, the rights of indigenous peoples, local communities, migrants, children, persons with disabilities and people in vulnerable situations and the right to development, as well as gender equality, empowerment of women and intergenerational equity.” – Preamble of the Paris Agreement.
Country-level Implementation
In country-level implementation, regulations are pertinent to dictate clear benefit sharing mechanisms. Several approaches can be used as a framework to regulate benefit sharing, such as:
- Mandate a percentage of proceeds to go to the community through regulation,
- Mandate a percentage of proceeds to go to the community, as negotiated on a case-by case basis,
- Mandate the development of a social plan or a community-based program.
Countries like Zimbabwe, Malawi and Kenya have provided stipulations for benefit sharing mechanisms with details as follows.
50% share of project revenue.
12.5% of the proceeds will go to the government, together with the share of proceeds to the local entrepreneurs.
- in land-based projects, the contribution shall be at least 40% of the aggregate earnings
- in non-land-based projects, the contribution shall be at least 25% of the aggregate earnings
Benefit Sharing Examples from Projects in Indonesia
Local Communities: More than as “Beneficiaries”
Yani Witjaksono, Director of Yayasan Bina Usaha Lingkungan, highlighted the importance of community involvement in implementing carbon markets. With the high potential of credit generation from multiple sectors, Indonesia needs to take advantage of embracing local communities to maximize the implementation of carbon projects across the country. Yani added, that involving local communities in carbon projects can bring benefits such as enhanced transparency and credibility through public monitoring, higher opportunity for credit generation, and compliance with financier requirements.
Benefit Sharing: Concept, examples & challenges
presented by Jeremy Buhain, Consultant, Neyen
The Importance of Community Involvement in Carbon Markets
presented by Yani Witjaksono, YBUL