Safeguards checklist

Projects must have clear safeguards and complete the following checklist

It is recommended that the definitions and monitoring systems for safeguards considered in the BCP follow the guidelines that each country includes in their reports in accordance with UNFCCC decision 12/CP19.

The implementation of activities and benefit sharing should be transparent and known to the communities and local governance structures in the BCP area. Most project benefits and monetized funding from the gross sale of biodiversity credits should reach communities through sustainable productive enterprises, payments for environmental services, or actions to strengthen local forest governance.

In the case of contracts between technical intermediaries and communities, it is recommended that these should not exceed 30 years, cancellable after 1 year, and with renewal options that honor the will of the communities.

In addition, The BCP must submit the following checklist:

• Transparency of costs and market price: Equality in the division of revenues is not always possible because of differentials in the land rights for certain areas, however, transparency is always achievable. Therefore, projects must put in place processes to ensure all costs associated with the project and the current market price of biodiversity credits are made transparent to all stakeholders. This information should be communicated in a clear and timely manner and allow for open discussions among the stakeholders such that there is no inequality of information access.

• Land rights: The project team is responsible for implementation and reporting on measures to avoid infringing land tenure and land use rights. The BCP should be based on the documented will of communities and landowners and no communities should be participating against their will. Agreements and contracts to demonstrate the administrative capacity of the BCP developer over its monitoring area should not include changes in holdership, possession, or occupation of communities, nor should they establish concession processes between communities and technical partners.

• BCP actions should be complementary to national forest objectives: Where there are conflicts between the national objectives and Indigenous rights, the BCP should include measures to align the interests and operate within the limits of national objectives. The project should cite which of the land's public policy goals it contributes to through the implementation of its activities.

• Fair distribution of income: Income from the project should be distributed in a way that is fair and also properly incentivizes people based on their land rights. It is recommended to utilize mechanisms such as smart contracts to directly distribute funds to individual community members' bank accounts. This will help avoid potential corruption risks and increase transparency. All financial transactions should be traceable and auditable.

• Legal safeguards and exit clauses: Incorporate legal safeguards and clearly defined exit clauses into contracts with IP and LCs, buyers, and investors. This will protect the rights and interests of all parties involved, and allow for safe withdrawal from the project under certain circumstances. Provide explicit provisions for contract revision or renewal.

• Indigenous rights: All agreements, contracts, and remuneration for biodiversity credits must honor the rights of the people who have been the historical possessors of the land. Recognize that the Indigenous groups have the right to take control of their own institutions, ways of life, their economic development or to maintain or strengthen their cultural knowledge, language, religion, etc., in accordance with ILO Convention 169.

• Empowerment strategy for IP and LCs: The innovation of providing income to IP and LCs means that they are being compensated in ways that may be new to them and may have implications in terms of their culture and empowerment. IP and LCs should have access to resources and education that will allow them to understand the implications of these changes so that they can implement an empowerment strategy for local communities, recognizing their vital role in biodiversity conservation. This should include capacity-building initiatives such as financial management and digital literacy training, and ensure respectful, inclusive engagement practices that incorporate local knowledge and preferences. The BCP must report on measures for the maintenance and promotion of the knowledge, practices, and techniques of IP and LCs.

• Data accessibility and privacy: Projects are required to make project data accessible to all stakeholders while respecting privacy and confidentiality obligations. This may require innovative communications strategies, such as providing audio information in Indigenous languages, capacity building for community leaders, and other provisions that ensure that people actually understand the data that they are seeing and also understand what data privacy they are entitled to. Establish clear protocols for data sharing to ensure stakeholders have the necessary information for informed decision-making and accountability.