A voluntary nature credit development framework led by Indigenous Peoples and local communities (IPLCs) has been launched by Pollination Foundation.

The framework provides the pillars of activity seen as needed to deploy a just nature credit market that supports the agency of IPLCs, said the non-profit arm of investment and advisory firm Pollination.

“The framework has the power to position IPLCs to lead on voluntary nature credit markets globally,” Pollination Foundation said in a report.

The report follows three years of research by the foundation in collaboration with Ampliseed network, which includes IPLC organisations such as the Australian Indigenous Desert Alliance.

Nature credits could be one tool in a mix of financing solutions to support the protection, regeneration and stewardship of nature, aligned with the final agreement from COP15, it said. They can provide funding for IPLC stewardship in areas unsuitable for carbon market revenue like such deserts, coasts and wetlands.

Source: Pollination Foundation

‘Nature credits’ in the report encompasses all types of nature-boosting units including biodiversity and water credits, it said.

A leading value of the framework is IPLCs make the decisions, and project design is grounded in their aspirations, Pollination Foundation said.

“It’s important that IPLCs lead the development of nature credit methodologies. Method design should be rooted in connection and cultural stewardship of landscapes and seascapes,” Pollination Foundation said.

“In addition, given the uncertainty of the market due to the current lack of demand, IPLCs can take actions now to position for future market opportunities.”

For example, they could grow relationships with nature-focused philanthropists, government agencies, and investors.

Institutions are “awakening to the critical role of IPLCs” in the creation of emerging nature markets, it said, citing research from the International Institute for Environment and Development, World Economic Forum and International Union for the Conservation of Nature published over the last three years.

Companies wanting to lead on the nature positive transition also have an opportunity to engage with IPLCs, it said.

“IPLCs are the best, and often last, remaining holders of knowledge who can answer the questions about how natural systems once functioned, what has been lost, and what is needed to protect, regenerate and maintain them.”

However, many IPLCs do not support the use of voluntary biodiversity credits to compensate for nature loss or offsetting, the non-profit said.

“It’s important that voluntary nature credit markets are not seen as the ‘silver bullet’ solve for financing a nature positive future. Voluntary nature credit markets are part of a complex financing puzzle.”

By Thomas Cox – t.cox@carbon-pulse.com

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