Benefit sharing, or the distribution of results-based finance, is a critical component of greenhouse gas emission reduction initiatives, including FCPF emission reductions programs. Equitable and transparent benefit sharing arrangements ensure that all stakeholders, including indigenous peoples and communities, are fairly recognized and rewarded for their role in reducing emissions, including through forest conservation and sustainable forest management.
Benefit sharing plans are central to FCPF programs. The FCPF’s Methodological Framework outlines requirements for benefit sharing plans that must be finalized and disclosed before FCPF programs can receive payments for emission reductions. These documents must include information on beneficiaries, benefits, and benefit sharing mechanisms for the distribution of results-based payments for verified emission reductions.
Online platform- Note on Benefit Sharing for FCPF and BioCF ISFL ER Programs (Spanish, French, August 2020)
- Benefit Sharing at Scale: Good Practices for Results-Based Land Use Programs
- Benefit Sharing at Scale: Tools and Good Practices (Webinar, Presentation, April 2020)
For example, emission reductions programs determine whether monetary (i.e., cash) or non-monetary (i.e., in-kind) benefits, or a combination, will be shared with various beneficiaries. Examples of benefits include capacity building, trainings, seeds, equipment, and other in-kind goods that help further reduce emissions, which can have compounding effects on the potential to generate additional emission reductions and results-based finance. Some benefit sharing arrangements also include benefits for community development (e.g., schools, health facilities, boreholes, etc.), depending on feedback from stakeholders.
In all cases, stakeholder participation, including through consultations, is key in the design, implementation, and evaluation of benefit sharing arrangements to ensure they respond to the needs and interests of the full range of stakeholders for the emission reductions program.
Benefit sharing plans are currently in various stages of development in FCPF programs. In many cases, these plans are informed by other programs and approaches, including: payment for environmental/ecosystem services (PES); bilateral programs (e.g. donor/recipient programs); multilateral programs; and regional, national or sub-national results-based programs (e.g. restoration, conservation, biodiversity funds or programs).