IP&LC Nature Credit Project Incubator

To achieve our goal, we’re building an IP&LC Nature Credit Project Incubator to flow new finance direct to IP&LCs to regenerate, protect and steward nature.  The design is modelled on our IP&LC Nature Credit Development Framework which is grounded in insights from world leading projects, Pollination’s global network of nature advisory and investment experts and decades of our teams lived experience.

The Framework is aimed at positioning IP&LCs to choose if, how and when to participate in nature credit markets, and provides a pathway to build the trust and credibility necessary for enduring outcomes. The pathway starts with values aligned partnerships, moving to explore nature credits markets and creating a pipeline to access the market in a way that aligns with community aspirations.

Over the next two years we’ll partner with IP&LCs in four different countries. We’ll walk alongside community organisations to align their aspirations and goals with a network of donors, corporates and advisory partners. To achieve this, we’ll connect communities with the knowledge and expertise needed to understand and explore nature credit markets, on their own terms and at their own speed.

Together with our aligned network of partners we’ll co-create a “readiness tool” for IP&LCs to participate in nature credit markets. This network of trusted partners will build the confidence to co-create projects that support IP&LC aspirations to regenerate, protect and steward nature for the benefit of people and the planet.

The Nature Financing Gap

Indigenous Peoples and Local Communities’ territories cover around 25% of the Earth’s land and waters and contain 80% of the world’s remaining biodiversity. Their knowledge, technologies and systems are critical to reaching global nature positive goals and a climate resilient future.

But, there’s a huge financing gap.  The Paulson Institute, TNC and Cornell report ‘Financing Nature: Closing the Global Biodiversity Financing Gap’ found that achieving ambitious global nature targets would require about US$711 billion mobilised by 2030. A number of ambitious pledges we’re made at UNFCCC COP26 in Glasgow designed to finance and scale IP&LC nature-based solutions, but a recent progress report identified that only a 2.7%³ of the pledge finance flows direct to IP&LCs.

The United Nations Convention on Biological Diversity’s Global Biodiversity Framework (GBF) was agreed at COP 15 with 188 nations across the world signing up.  With a mission to stop and reverse biodiversity loss by 2030, the GBF sets out targets to mobilise public and private sector capital to address the challenges, including the equitable representation & participation of IP&LCs.  Target 19 called out biodiversity credits as one tool to mobilise capital for nature.

As a result, biodiversity or “nature” credit markets are accelerating at pace.  As was experienced with voluntary carbon markets, if IP&LCs aren’t front and centre of nature credit market design, this nascent market mechanism could deliver the next wave of colonisation. The risk of private companies purchasing IP&LCs unregistered lands or registering projects on lands without free, prior and informed consent is real.  And, if IP&LCs aren’t engaged in market design from the outset it’s likely that the market systems will restrict or require multiple intermediaries for IP&LCs to participate. Empowering IP&LCs isn’t just a matter of justice, it’s a strategic imperative.

Marketplace for Nature

There are three emerging directions for the biodiversity credit markets to develop: Indigenous-led initiatives under voluntary standards, private sector-led initiatives under voluntary standards and government-led initiatives under specific policy or legislation, or combinations thereof.

Check out our Marketplace for Nature website for a global map of voluntary biodiversity credit initiatives around the world.

Recent Publications