IPLC | Indigenous Peoples and Local Communities

In the context of the global biodiversity agenda, the acronym IPLC refers to Indigenous Peoples and Local Communities. Considered guardians of nature for their crucial role in preserving ecosystems, their practices and knowledge are recognized for combating biodiversity loss and, consequently, contributing to climate change mitigation. It is estimated that their lands and territories cover about 32% of the planet’s land surface, most of which are in good ecological condition.Recently, biodiversity credits have gained prominence on the international agenda, emerging as a market instrument for channeling resources to landholders of natural areas that ensure the maintenance of biodiversity and ecosystem services. In this sense, the involvement of IPLCs with this topic brings promising opportunities, but it may also pose associated risks.

This new opportunity must respect local traditions and knowledge, avoiding processes of cultural dispossession. It is necessary to ensure that communities are not exploited by external actors through abusive practices and that benefits are distributed fairly. Contracts and information related to biodiversity credits must be understandable to communities, and community agreements on the use of resources must be carried out inclusively and participatively. It is essential to guarantee that the entire process of generating biodiversity credits by IPLCs respects the legislation governing the rights to Indigenous Lands in each country, ensuring the feasibility analysis of rights to credits. Finally, it is necessary to ensure that the assessment for generating biodiversity credits is conducted properly and transparently, supported by technical and scientific indicators that confirm that the areas where credits are being generated deliver the expected results for biodiversity conservation.

It is crucial that biodiversity credit projects are developed in a participatory manner, respecting the rights and autonomy of Indigenous peoples and traditional communities. Therefore, enabling the involvement of these actors and the associations that represent them in the development of specific regulations for biodiversity credits in their territories is fundamental to ensuring that biodiversity credit projects are fair, effective, and sustainable over time.

With over 17 years of expertise in biodiversity metrics, the LIFE Institute plays a leading role in establishing objective criteria for the certification of biodiversity credits in Indigenous Peoples’ and Local Traditional Communities’ (IPLCs) territories.

As a key milestone in advancing this agenda, the LIFE Institute coordinated a consultative and collaborative process in 2024, structured around the following activity: Workshop: “Developing Recommendations and a Risk Map to Improve the Implementation of Biodiversity Credit Projects for IPLCs”. The workshop took place on October 24, 2024, at the Exchange Center (Place Quebec), within the Valle del Pacífico Event Center, in the Blue Zone of COP16, in Cali, Colombia.

Organized by the LIFE Institute in partnership with the Avina Foundation, the event brought together representatives of Indigenous Peoples—including members of the Parintintin people and the Coordination of Indigenous Organizations of the Brazilian Amazon (COIAB)—as well as representatives from the financial sector, including TER Investimentos and Xau Conservation. Approximately 40 participants attended the workshop, including leaders from local communities, civil society organizations, and financial institutions.

Designed to foster meaningful and equitable dialogue among diverse stakeholders, the initiative reinforced the inclusion of Indigenous Peoples and Local Traditional Communities (IPLCs) in the emerging nature credits market. The resulting assessment identified the principal risks and opportunities associated with implementing biodiversity credit projects in these territories and laid the foundation for a set of preliminary recommendations aimed at strengthening safeguards and enhancing collaboration between traditional communities and financial investors.

Access the report of this workshop here.
1
2
3
4

Guiding principles of this work

Respect and Inclusion

Engaging Indigenous communities from the outset ensures that their traditional knowledge and cultural practices are respected and integrated into the project. This also fosters an inclusive and collaborative approach.

Model Validation

Validating the effectiveness and feasibility of the biodiversity credit model in a real-world context through pilot application. This helps identify potential issues and make necessary adjustments before large-scale implementation.

Capacity Building and Empowerment

The participation of Indigenous communities in the pilot process strengthens their capacities and empowers them to manage and benefit from conservation projects.

Risk Minimization

Pilot tests help identify and mitigate potential risks, such as conflicts of interest, adverse environmental impacts, and social justice issues, ensuring that projects are sustainable and equitable.

Transparency and Trust

Broadly involving Indigenous communities in the pilot promotes transparency and helps build trust among all stakeholders, increasing acceptance and project success.

Economic and Social Benefits

A successful project can generate direct economic benefits for communities, such as revenues from the sale of biodiversity credits, while improving social well-being and environmental conservation.

Official Recognition of Territories

Ensuring alignment of the territory with the IUCN Protected Area Management Categories System or a similar system approved by local legislation.