Benefit sharing is a critical component of initiatives that deliver results-based payments for verified reductions in greenhouse gas emissions. Equitable and transparent benefit sharing mechanisms ensure that all stakeholders, including indigenous peoples and other forest-dependent communities are fairly compensated for their role in forest conservation and sustainable forest management.
Benefit sharing plans in ER programs should include:
Benefit sharing plans are central to Forest Carbon Partnership Facility programs. The FCPF’s Methodological Framework outlines requirements for benefit sharing plans that are required before FCPF programs can receive payments for emission reductions.
Results-based payments for avoided emissions are often the most talked about benefit of ER programs, but benefits can also include forest rent (i.e. the revenue derived from the management of a forest resource), support for sustainable land use and livelihoods, institutional and governance support, as well as compensation for opportunity costs.
Identifying beneficiaries is a complex process that is grounded in a jurisdiction’s legal context around property rights. Clear and secure property rights are important for equitable benefit sharing in a carbon market. An assessment of legal frameworks and property rights as well as perceived rights and interests is paramount to inform any benefit sharing plan. All aspects of benefit sharing plans should be developed through broad community support, including from indigenous peoples and marginalized communities, and developed through participatory consultation.
Benefit sharing plans are currently in various stages of development in FCPF programs. Approaches to sharing benefits that are being used have been tested through 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).
REDD+ benefit sharing resources