Indigenous Communities Need Access to a High-Integrity Carbon Market | Opinion

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As a member of the Shuar community in the Ecuadorian Amazon, I've collaborated with local, national, and global organizations to defend Indigenous rights for more than 20 years. I've constantly underscored the need for direct, flexible, and timely finance that aligns with the cultural and economic realities of Indigenous communities. It's important that Indigenous peoples manage, interpret and make decisions on scientific, technological, and financial information to implement programs in their territories.

As we face a climate, water, and biodiversity crisis, market-based initiatives and carbon and biodiversity credits must be kept within reach of Indigenous understanding. Access to carbon markets is essential to protecting our lands' sustainably but for this to happen an urgent paradigm shift is required. Without fair financial compensation, our communities—and the forests we protect —risk falling into untenable situations.

Indigenous peoples have preserved our pristine territories for generations. Today, the optimal management of natural resources, including forest ecosystems, requires us to blend traditional knowledge with science, technology, and finance. Research consistently shows that Indigenous territories have lower deforestation rates and higher secondary forest growth. A recent report by Norwegian scientists highlighted that natural forests play a superior role in regulating the carbon cycle and maintaining biodiversity.

Ratcliffe on Soar coal fired power station
Ratcliffe on Soar coal fired power station near Nottingham, U.K. Getty Images

Despite our role as protectors of forest ecosystems, Indigenous communities receive less than 1 percent of global climate finance. At COP26 in Glasgow, countries announced $1.7 billion for Indigenous peoples, but this financing has not yet reached our communities. The financial burdens we carry are no longer sustainable without the support of climate finance and innovative policies.

Our proposal goes beyond conventional carbon credits. Indigenous territories, by their nature, generate high-integrity credits and additional values linked to traditional knowledge, ecological restoration, and biodiversity conservation. These territories are intact forest conservation areas with low deforestation rates, known as high forest, low deforestation, or HFLD. Financing these regions is both an urgent and effective climate action because these pristine ecosystems are not only critical carbon sinks, they also house unparalleled biodiversity, and support the rich cultural heritage of our communities. Yet, the current system fails to adequately compensate Indigenous communities for their conservation work, which calls for a rethinking of our approach to climate financing and carbon markets.

The solution lies in high-quality, high-integrity HFLD credits. Unlike traditional carbon credits that focus on reforestation or reducing high deforestation rates, HFLD credits prevent deforestation in intact forests. These credits don't receive adequate recognition, and as a result, Indigenous communities are sidelined from much-needed funding. Ignoring the importance of HFLD carbon credits goes against the commitments that global leaders have made to support Indigenous peoples, and places obstacles on our capacity to take control of our economies through market mechanisms.

The carbon market can help conserve intact forests while respecting Indigenous self-determination. In the coming weeks, the Integrity Council for the Voluntary Carbon Market (ICVCM) will decide if HFLD carbon credits qualify for their Core Carbon Principle (CCP) status. CCP status indicates to companies the credits that meet strenuous standards of integrity. HFLD carbon credits meet the CCP standards. Not recognizing HFLD credits as suitable for CCP status would cut our communities off from a vital funding source, endangering both the forests we protect and the global climate agenda.

To genuinely address the climate crisis, the international community must go beyond empty promises and deliver actionable support for Indigenous communities. We're tired of seeing commitments that never materialize.

We propose an integrated approach to HFLD credits, based on traditional knowledge, science, technology, and financing. This approach should be developed on four pillars—biodiversity conservation, ecological restoration, Indigenous economic development, and the management of traditional knowledge. We must protect pristine ecosystems, restore what has been damaged, develop sustainable livelihoods, and systematically document traditional knowledge in order to pass it on to future generations.

Forests like those in HFLD regions, that my people have stewarded for generations, are at a crossroads. With the right financing, Indigenous peoples can continue to serve as bastions against climate change. Without it, the world risks losing some of its last untouched ecosystems.

Valuing Indigenous contributions in the fight against the climate and deforestation crises is both the ethical choice and the smart one for our planet's future. The ICVCM and global leaders have a chance to strengthen the role of Indigenous peoples in conservation, by acknowledging the integrity behind HFLD credits and demonstrating that the world supports those on the frontlines of defense of HFLD areas. It's time for the world to turn promises into action and ensure that Indigenous peoples can continue our invaluable work for the planet with the resources we need.

Tuntiak Katan is president of Ikiam Foundation and member of the Shuar People of Ecuador. He is also a member of the Distinguished Advisory Group of the ICVCM.

The views expressed in this article are the writer's own.

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