Module 4: Opportunities, Barriers & Case Studies
Introduction
A carbon project can provide economic opportunities for First Nations that align with community values and priorities. We are seeing increasing interest in carbon projects from First Nations because of the potential to give communities a new path to achieve their community vision for development in a way that protects nature and biodiversity and fights the climate crisis.
A carbon project can strengthen the protection of wildlife habitats, protect sacred sites, and increase employment opportunities. It can also enable the assertion of rights and title, and create a sustainable revenue stream to re-invest in community programs.
4.1 Opportunities for First Nations
Overlap with Land Protection & Indigenous Protected and Conserved Areas (IPCAs)
IPCAs are lands and waters where Indigenous governments are protecting and conserving culture and ecosystems through Indigenous laws, governance, and knowledge systems [1].
IPCAs enable continued storage of carbon in natural ecosystems.
A carbon project can provide predictable, stable, and long-term own-source revenue for an IPCA.
The federal government’s commitment to protect 30% of land by 2030 presents the opportunity for supporting First Nations in their continued stewardship of their traditional lands.
Read more about the overlap of carbon financing and IPCA’s here: Advancing Indigenous Protected and Conserved Areas through Carbon Financing (2023) - Ecotrust Canada
Biodiversity conservation
Actions that protect or restore nature often align with Indigenous worldviews.
Reducing logging of primary forests, restoring previously logged areas, and conserving critical habitat areas improves wildlife and plant populations.
Ultimately, this supports Indigenous cultural and traditional land use such as hunting and harvesting.
Economic and Employment
Revenue from carbon projects can support capacity needs, employment and community development, and can reduce dependence on revenue from extractive activities.
Carbon credits could generate capital to support Guardians programs.
Operating a carbon project provides an alternative employment option that can promote a sustainable bioeconomy and align with Indigenous knowledge.
Indigenous Guardians can carry out the necessary monitoring work for carbon projects.
Community self-determination
Carbon projects enable self-determination when they are established and managed according to First Nations legal orders, knowledge systems, and governance systems, which are an expression of Indigenous nationhood.
Carbon projects can support self-determination by reshaping patterns of resource extraction on traditional territories and funding community priorities around land use.
4.2 Barriers for First Nations
Capital and Capacity
Developing a carbon project requires resources and time. The rigid rules and regulations related to carbon projects underlie this challenge.
The implementation and ongoing monitoring and reporting of an offset project is costly, and access to funding can be a constraint.
Implementation of a carbon project may mean forgoing other economic opportunities such as logging and mining, in the project area.
There will always be a risk that demand will not meet supply, and communities may be left with unsold offset credits.
The term “Carbon Cowboys” describes carbon project developers who may not have the best interests of community interests, making unrealistic promises for what a carbon project can deliver, or taking financial advantage of a project owner. In worst scenarios, some international carbon schemes have led to the dispossession of land.
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The report titled “Seeking FPIC from Indigenous Communities for Carbon Projects: A Best Practice Guide by Indigenous Carbon Industry Network outlines questions that a Nation might ask a project developer to mitigate this risk, including:
How will the project impact community rights?
How long is the project’s permanence period?
Are there restrictions on what the community can and cannot do to the land during the life of this project?
How does the project impact traditional cultural rights, access to the land and the communities’ ability to carry out traditional hunting, fishing and fire management practices?
What are the risks and benefits of the project?
What are the financial, cultural and environmental benefits of this project? How do they vary over time?
Are there ongoing costs for record keeping, auditing, reporting and who is responsible for these?
What is the expected profit/ loss?
What is the risk if the project is forced to end or has low returns
For a full list of questions, refer to the report Seeking free, prior and informed consent from Indigenous communities for carbon projects.
Entitlement
Crown recognition of First Nations’ jurisdiction over their territories is limited and carbon rights have not yet been defined across most of B.C.
The lack of trust in the crown can affect the desire to pursue the steps to achieving a carbon project that includes government relations, like signing Reconciliation and Atmospheric Benefits Sharing Agreements.
Negotiating an ABSA with the provincial government can be time-consuming.
4.3 Case Studies
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Cheakamus Community Forest (CCF)
Project at a Glance
Who? Sḵwx̱wú7mesh Úxwumixw, Lil̓wat7úl and The Resort Municipality of Whistler,
When? April 2009
Project Development Partners: Brinkman Climate & Ecotrust Canada
Protocol: Improved Forest Management (IFM) through the BC Forest Offset Protocol 1.0
Main buyers: Province of BC, Brinkman Climate, VanCity, Ecotrust Canada, Resort Municipality of Whistler
Verification Standard: BC Emissions Offset Regulation
Entitlement Method: Atmospheric Benefit Sharing Agreement
Overview
The Cheakamus Community Forest lies on the overlapping unceded territories of the Sḵwx̱wú7mesh Úxwumixw (Squamish Nation) and the Lil̓wat7úl (Líl̓wat Nation), surrounding the Resort Municipality of Whistler B.C. The Cheakamus Community Forest was created following an announcement from the Ministry of Forests that the timber harvest volume around Whistler would be available for a new tenure through the new Community Forest Program [2]. The Resort Municipality of Whistler, Sḵwx̱wú7mesh Úxwumixw and Lil̓wat7úl negotiated a partnership based on the common belief that the people of the region, should manage the forest harvesting according to their values.
The group, supported by Brinkman Climate and Ecotrust Canada, proposed to jointly manage 33,000 ha of forest under the auspices of Cheakamus Community Forest Society, an independent non-profit. The agreement became official in 2009 with the signing of a 25-year tenure with the provincial Ministry of Forests and Range.
Through updated analysis of the land base based on community values, the Cheakamus Community Forest (CCF) and its partners have successfully negotiated with the Ministry of Forests to reduce the amount of timber harvested from 40,000m³ to 21,000m³ through implementing Improved Forest Management (IFM) actions that align with community management values.
Of the more than 33,000 hectares allocated for the CCF, approximately 15,000 hectares are protected through a variety of legal and voluntary mechanisms from being commercially harvested. This means that animals and plants can flourish and recreational opportunities expand, while new forestry practices can be explored and refined [3].
The CCF is the first carbon project to be established in a BC forest tenure, and also the first project in any community forest tenure in Canada. The carbon credits generated by the CCF project are quantified using the B.C. Forest Carbon Offset Protocol, and verified to the B.C. Emissions Offset Regulation.
These actions are guided by the community forest’s ecosystem-based management plan, and delivered on the land through reduced harvest volumes, extended harvest rotations, expanded reserves, and protection of old-growth forests and other important wildlife habitats.
Image credit: Cheakamus Community Forest
Protected Areas within Cheakamus Community Forest
Protected Areas within Cheakamus Community Forestry
Through the implementation of these management actions, the CCF carbon project reduces greenhouse gas emissions by approximately 10,000 tonnes of carbon dioxide per year. During the first verification period from 2009 to 2013, the project generated 65,546 carbon credits [4]. The project has sold approximately 150,000 credits to various buyers, including the provincial government, VanCity, Ecotrust Canada, Brinkman Climate, and the Resort Municipality of Whistler, whose purchasing of offsets contributes to their own climate goal of going carbon neutral [5].
In 2021, the provincial government purchased over 7,000 carbon credits at a rate of $14.00/tonne from the CCF project [6]. In addition, the project had approximately 12,500 carbon credits available for purchase through Brinkman Climate at $25 tonne until May 31, 2015.
While the revenue from offset sales does not currently cover the entirety of operational costs, the federal compliance market price of carbon emissions is set to continually increase from $65 per tonne of CO2e in 2023 to $170 by 2030, which will hopefully support higher price negotiation with the provincial government and bring enhanced economic security for projects like the CCF.
Community Forest Agreements and Indigenous-led carbon projects can bring exclusive use- rights and can be a productive tool in redistributing decision-making power away from state and private corporations and into the hands of local communities. Kerry Mehaffey, chief administrative officer for the Líl̓wat Nation, says that these forestry tenures have become an opportunity to take their land back [7]. Historically, Líl̓wat Nation did not see any of the benefits from harvesting that occurred in their own territory, and even took direct action to prevent big forestry companies from access, they now hold the majority of tenure to their lands, with annual harvesting projects divided equally between Lil’wat Forestry Ventures LP and Squamish Forestry LP.
The CCF has given the First Nations and the local community economic control and the right to manage the forest for the first time in centuries [8]. The redistribution of decision-making power has enabled the protection of primary forests that contain culturally significant flora and fauna that are integral to Indigenous knowledge systems and community health [9].
This project provides an excellent case study of what decision-making based on community values looks like in action.
On June 10th, 2021, the Squamish Nation formally gave notice to the provincial government to defer old-growth logging across the entirety of their traditional territory for two years [10]. On the same day, the CCF Board of Directors passed the motion to defer commercial old growth logging for the remainder of 2021 while working towards finding consensus on old growth management in the CCF.
Since the announcement, the CCF has extended the moratorium on old growth through 2022 and is currently in the process of transitioning to harvesting only mature and second-growth stands [11]. In order to achieve these community objectives, the CCF has proposed to reduce the forests’ Annual Allowable Harvest, set by the provincial government, from 21,000 m³ to 13,000m³.
Photo credit: Joseph Pallant
Great Bear Rainforest Carbon Project
Source: Conservation through Reconciliation Partnership
Project at a Glance
Who? Coastal First Nations: Wuikinuxv, Heiltsuk, Kitasoo Xai’xais, Nuxalk, Gitga’at, Gitxaala, Metlakatla, Old Massett, Skidegate, and Council of the Haida Nation (Our People - Coastal First Nations) ‘
When? April 2009
Project Development Partners: Ostrom Climate
Protocol: Improved Forest Management (IFM) through BC Forest Offset Protocol 1.0
Main buyers: Province of B.C.
Verification Standard: B.C. Emissions Offset Regulation
Entitlement Method: ABSA
Photo Credit: Coast Funds
Image Credit: BCAFN
Overview
The Great Bear Rainforest (GBR) Carbon Project is an aggregate project covering over 5 million ha of the B.C. coast, spanning the unceded and overlapping territories of the 14 First Nations who developed the project, and collectively make up the Coastal First Nations. The project land encompasses temperate rainforest and coastal ecosystems.
The GBR Project arose in the wake of years of ongoing protests and legal conflict between First Nations and the federal and provincial governments over rights to fish and forests. After high-profile anti-logging campaigns, landmark agreements in 2006 and 2009 set aside protected areas and set conservation targets, supporting the development of a carbon offset project [12].
In 2009, Coastal First Nations launched the GBR Project with the provincial government, making it the first Indigenous-led carbon project in North America. The GBR is one of Canada’s most recognized areas of Indigenous land stewardship and conservation. The GBR Project and the CCF project remain the only Indigenous-led carbon offset projects on ‘crown’ land in Canada.
The GBR project is divided into three sub-projects: the Great Bear South Central Project, the Great Bear North and Central Mid-Coast project, and the Great Bear Rainforest Haida Gwaii project. The projects use Improved Forest Management to generate offsets by reducing logging. The GBR Project conserves 50-80 percent of standing growth that would have been logged under the previous annual allowable harvest set by the provincial government.
The provincial government has been the main purchaser of the GBR carbon credits, as well as some sales to voluntary markets. In 2021, B.C. purchased offsets from three sub-projects from South Central, Central Mid-Coast and Haida Gwaii at the price of $10.56 to $12.00, totaling an amount of $5.4 million. Revenue generated from the sale of offsets has allowed more priority forest areas to be protected, has contributed to greater development of a Guardian Program and has helped cover some of the costs of the construction of Heiltsuk Nation’s Big House [13]. The GBR Project generates over 8 million tonnes of carbon credits annually [14].
More on Great Bear Carbon Project: Indigenous Carbon Offsets Support Conservation Economies - YouTube
West Arnhem Land Fire Abatement (WALFA) Project
Project at a Glance
Who? Arnhem Land Fire Abatement (Northern Territory) Limited (ALFA) partnering with five Indigenous Rangers: Warddeken, Bawinanga/Djelk, Mimal, Jawoyn, Adjumarllal
When? Initiated in 1990s, registered as an offset project in December 2014
Project Development Partners: Northern Land Council, Adjumarllarl, Mimal, Jawoyan and Djelk Rangers, Warddeken Land Management Ltd Northern Territory Government, NAILSMA
Protocol: Savanna Fire Management Methodology
Main Buyers: ConocoPhillips, and other private market buyers
Verification Standard: Carbon Farming Initiative – Emissions Abatement, now called the Emissions Reduction Fund
Entitlement Method: Exclusive Aboriginal ownership of land and natural resources
Since time immemorial, Indigenous Peoples of the fire-regulated regions of tropical Northern Australia have been practising traditional burning in the savanna during the early dry season (January to July) to reduce the risk of fires later in the dry season [15]. Planned burn areas create patches of land throughout the savanna, which reduces the risk of fire from spreading, and drastically reduces methane (CH4) and nitrous oxide (N2O) emissions that would occur in the case of an uncontrolled fire [16]. This practice was disrupted and strongly discouraged during the time of European settlement.
The West Arnhem Land Fire Abatement (WALFA) project started in the 1990s when Elders from five Indigenous Rangers gathered to rekindle the practice of traditional burning. The five rangers groups are the Djelk Rangers, Warddeken Rangers, Mimal Rangers, Jawoyn Rangers, and the Adjumarlarl Rangers [17].
The WALFA project covers an area of 28,000 km2 of Northern Australia’s savanna. In 2013, the communities in west Arnhem Land formed the Aboriginal-owned nonprofit Arnhem Land Fire Abatement Limited (ALFA), and since then ALFA manages the carbon credits generated from five carbon projects in the region. Credits from these traditional fire management projects are sold to the Australian government and private buyers in various carbon markets. The revenue from sales is used to cover operations of the project, and also to finance the next round of savanna fire projects managed by ALFA [18].
The WALFA project registered for carbon market in December 2014, after savanna fire management became an accepted methodology under the national compliance carbon market - Emissions Reduction Fund [19]. To date, 2,292,614 Australia Carbon Credit Units (ACCUs) have been generated [20]. First Nations ACCUs are especially popular in the market, trading at an average of $22.50 (CAD$ 20.6) per unit [21].
The WALFA project has been a demonstrated success case due to several enabling factors: clear land ownership, established through exclusive ownership under land rights law; support from the legislation that supported Indigenous fire management; simplification of project verification for Indigenous-led projects; and strong buyer interests from carbon markets [22].
In turn, WALFA became the precursor of 70 more savanna fire management projects in tropical north Australia [23]. These projects continue to bring economic livelihoods and employment opportunities and embrace traditional cultural practices, while at the same time restoring and enhancing the local biodiversity and reduction in emissions and wildfire occurrences.
Read more about the current status of WALFA project here: ERF project - West Arnhem Land Fire Abatement (WALFA) Project (cleanenergyregulator.gov.au)
Yurok Tribe Carbon Project
Project at a Glance
Who: Yurok Tribe
When: 2011
Protocol: Improved Forest Management, through Air Resources Board (ARB) Forest Project Protocol Main Buyers: compliance buyers through California’s cap and trade program
Verification Standard: SCS Global Services are the verifiers
Entitlement Method: fee-simple ownership
Photo Credit: Joel Redman
Overview
The Yurok Tribe has been steadily buying back their homelands since 2011 through sale of carbon credits. As of 2018, the Yurok Tribe has re-possessed 23,000 hectares of land that was taken by the colonial government during the gold rush era and used for mining, timber extraction and homesteading. Now, this land is being managed by the Yurok Tribe in a way that aligns with Yurok land values, such as tending and harvesting culturally important plants, hunting and conducting cultural burns.
The carbon project began on 19,000 hectares of land purchased from a private timber company by the Yurok tribe for $19 million USD via a low-interest loan. After a financial feasibility study was completed, the Tribe began implementing an Improved Forest Management project, which uses traditional land stewardship practices such as burning to maintain or increase carbon storage on the land.
The Yurok Tribe collected inventory data required by the Improved Forest Management (IFM) protocol and used past timber harvest plans from the previous landowner, a private timber company, to determine the baseline scenario. The Yurok’s IFM project was able to prove additionality by increasing carbon stocks from the baseline scenario. The Yurok sell the carbon credits generated by the project to compliance buyers through California’s Cap and Trade program.
The project is registered under the Air Resources Board (ARB) Forest Project Protocol. As per the protocol, the Yurok have committed to annually updating and maintaining the carbon inventory for its 100-year life.
The Yurok have been using revenue generated from the offset project to pay off loans, buyback their traditional territory, and train staff to continue the project over the next 100 years. The Yurok use the offset project as an assertion of their inherent sovereignty over the land and represents a project that could be replicated in British Columbia in the future.
Read more about the Yurok Tribe’s carbon project here: First Nations Carbon: A BCAFN Discussion Paper and here: How Carbon Trading Became a Way of Life for California’s Yurok Tribe | The New Yorker
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