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Human Rights:
The Missing Piece in Nature-Based Climate Finance

The Climate Justice Standard ensures nature-based solutions and market-based mechanisms can effectively protect human rights while fighting climate change.

Today is Human Rights Day. The world has made progress since the United Nations General Assembly established the Universal Declaration of Human Rights 76 years ago today. However, in the face of an escalating climate crisis, we must do more to protect all people — especially the most vulnerable in emerging and developing economies.

For these countries, the need for climate finance is greatest. Despite COP29’s agreement for industrialized countries to mobilize $300 billion per year for developing countries by 2035, this is nowhere near the trillions needed to avert disaster.

When done well, the voluntary carbon market (VCM) can bridge the climate finance gap by funding effective mitigation and adaptation tools. One such example is nature-based solutions, which can contribute about 20 percent of the mitigation needed between now and 2050 to keep global temperatures below 2°C. The VCM can also channel critical funding to support the community development, resilience and wellbeing of Indigenous Peoples and local communities (IP & LCs) around the world.

Unfortunately, some nature-based carbon projects have had a troubling history with human rights. In the worst examples of carbon offset projects, there have been violations of Free Prior and Informed Consent, limits on land access and even unlawful land seizures.

In response to the many challenges, several entities have introduced measures to improve the oversight, integrity and transparency of carbon credit projects to ensure they produce credible carbon benefits while supporting local communities. Many of these efforts — including the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles, the Commodity Futures Trading Commission’s guidance for listing carbon credits, and the White House’s Voluntary Carbon Markets Joint Policy Statement and Principles — focus on environmental integrity issues, ensuring carbon benefits are accurately calculated, additional and durable. These efforts are a step in the right direction; but in my view, we must go further.

Therefore, I and an interdisciplinary team have been developing the Climate Justice Standard — a framework that supports the social integrity of natural climate solutions. It is designed for both carbon credit projects and a climate contribution model — ensuring flexibility and a commitment to high-quality projects that protect biodiversity and deliver meaningful socio-economic benefits to IP & LCs while mitigating climate change.

A promising example and pilot project of the Climate Justice Standard already embodying these reforms is the Kawsay Ñampi (Way of Life): Conservation and Preservation of the Living Forest Project in Ecuador. Led by the Kichwa People of Sarayaku in the Ecuadorian Amazon, this initiative demonstrates how nature-based climate projects can empower IP & LCs, advance climate action and protect biodiversity — offering a hopeful model for wealth transfers to the Global South amid growing climate finance needs.

In the Kawsay Ñampi project, the Sarayaku people employ community-based forest guards and a technical monitoring team who rely on ancestral ecological knowledge as well as appropriate technologies. Together, they work to monitor biodiversity and forest health, detect disturbances and threats to the ecosystem, and control intrusions into their territory. I have seen the Sarayaku people fight against oil development and illegal logging on their lands — persistent threats that continue to endanger their territory.

Revenue from the project will fund forest patrols, ongoing carbon and biodiversity monitoring, and empower the Sarayaku people to continue their long history of forest stewardship that includes opposing extractive activities in and around their land. It will also finance their community plans for development and wellbeing. The project is seeking funding from socially responsible companies and organizations that prioritize Indigenous-led climate solutions and align with the Sustainable Development Goals (SDGs).

To be clear, the Kawsay Ñampi project is not a carbon offset. While it has gone through a rigorous certification and verification process similar to any other carbon offset project, Kawsay Ñampi does not allow buyers to claim carbon reduction or neutrality. This distinction is intended to ensure carbon projects are seen as a complementary tool to necessary decarbonization action across the value chain.

Instead, the project adopts a mitigation contribution model that recognizes a broader range of benefits. For companies keen to support broader SDGs, this model provides an opportunity to meaningfully contribute to climate action by supporting projects with additional social and environmental impacts.

By emphasizing both environmental and social potential, the Kawsay Ñampi project provides a blueprint for the future of equitable, natural climate solutions.

To address the main drivers of deforestation, scale climate mitigation, enhance biodiversity — and most importantly, uphold human rights — we need to embrace all available tools, including a reformed voluntary carbon market. With frameworks such as the Climate Justice Standard, nature-based solutions and market-based mechanisms can effectively protect human rights while fighting climate change.