Nature-Based Solutions and Access and Benefit Sharing: A Pathway to Sustainable Wealth and Climate Resilience

How countries are redefining their bioeconomy for the future | World Economic Forum ( weforum.org )

ABS Biotrade: Biodiversity-Based Value Chains ( abs-biotrade.info )

Nature-based solutions (NbS) are integral to tackling the intertwined challenges of climate change, biodiversity loss, and sustainable development. They encompass a variety of strategies, such as ecosystem restoration, conservation, sustainable management of natural resources, and agroforestry, all of which leverage the power of nature to address societal challenges. However, the full potential of NbS can be truly realized when combined with mechanisms like Access and Benefit Sharing (ABS), which provide a framework for equitable and sustainable resource use.

Access and Benefit Sharing (ABS): A Win-Win Solution

What is ABS? ABS is a concept under the Convention on Biological Diversity (CBD) that governs access to genetic resources and the fair and equitable sharing of benefits arising from their utilization. It ensures that indigenous communities and biodiversity-rich nations benefit from the use of their natural resources. ABS agreements create a framework that incentivizes sustainable use and conservation of biodiversity while fostering socio-economic development.

ABS in Action:

1. Biodiversity Protection and Sustainable Use: ABS agreements encourage the protection of natural habitats by making them economically viable. For instance, pharmaceutical companies may seek access to plant extracts for developing new drugs. Under an ABS agreement, the community from which the resource is sourced benefits through royalties, capacity-building initiatives, and infrastructure development. This creates a financial incentive for local communities to conserve their ecosystems rather than over-exploit them for short-term gains.
2. Climate Resilience and Adaptation: ABS agreements can directly contribute to climate adaptation by promoting the sustainable use of resources. For example, traditional knowledge about drought-resistant crops can be shared under ABS frameworks, enabling the development of resilient agricultural practices. This can significantly benefit regions facing the impacts of climate change by enhancing food security and resilience.
3. Empowerment of Indigenous Communities: Indigenous and local communities are often the stewards of biodiversity. ABS agreements recognize their role and ensure that they are not merely passive providers of resources but active beneficiaries. This empowerment helps preserve cultural heritage, traditional knowledge, and practices, which are often intrinsically linked to environmental stewardship.

How ABS Agreements Contribute to Climate Action

Enhancing Carbon Sequestration ABS agreements can support projects that protect and restore forests, wetlands, and other ecosystems that sequester carbon. Communities that manage large forest areas could engage in ABS agreements where they share in the benefits of any carbon credits generated. This not only provides them with direct financial benefits but also aligns their economic interests with global climate goals.

Supporting Sustainable Livelihoods One of the key criticisms of many carbon market projects is that they do not always support the livelihoods of local communities. In contrast, ABS agreements can directly tie the sustainable use of resources to local economic benefits, making conservation economically viable. This is particularly crucial in developing countries, where alternative livelihoods are needed to reduce dependence on activities that degrade natural habitats.

Bridging the Gap: Carbon Markets vs. Nature-Based Solutions

The focus on carbon markets has its place, but as outlined in my last post, such has significant flaws. In contrast, NbS, supported by robust ABS agreements, addresses the root causes of climate change while providing co-benefits such as biodiversity conservation and community empowerment.

Reforestation projects under ABS can provide long-term carbon sequestration, support biodiversity, and create sustainable livelihoods for local communities.

Practical Examples

1. Arogyapacha Plant in India: The Kani tribe in Kerala, India, discovered the medicinal properties of the arogyapacha plant. An ABS agreement was established where a pharmaceutical company developed a drug using the plant, and the tribe received a share of the profits. This not only provided financial benefits to the community but also incentivized the conservation of the plant's habitat.
2. Brazilian Amazon and Copaíba Oil: Communities in the Brazilian Amazon have long used copaíba oil for its medicinal properties. An ABS agreement allowed a cosmetic company to use this oil in its products, with a portion of the profits going back to the community. This arrangement encouraged sustainable harvesting and the protection of the copaíba tree, which also contributes to carbon sequestration.

The Untapped Potential of Indigenous-Led Nature-Based Solutions

Indigenous Land Stewardship: A Vital Resource

Globally, indigenous peoples and local communities manage around 38 million square kilometers of land, which accounts for approximately 30% of the world's land area. These territories encompass some of the most biodiverse and ecologically critical areas on the planet, including vast tracts of tropical rainforests, savannas, and wetlands. According to the World Resources Institute, nearly 80% of the planet's remaining biodiversity is found in lands managed by indigenous peoples. These areas play a crucial role in carbon sequestration, climate regulation, and biodiversity conservation.

Potential for Sustainable Wealth Creation

The economic potential of nature-based sustainable wealth creation under indigenous stewardship is vast.

Implementing NbS could contribute over $4 trillion per year in economic benefits by 2030, through sectors such as sustainable forestry, agriculture, and ecotourism. Indigenous communities, with their traditional knowledge and sustainable practices, are uniquely positioned to lead in this area, particularly through mechanisms like ABS agreements.[1]

Key Opportunities for Wealth Creation:

1. Carbon Markets and Ecosystem Services: Indigenous territories in tropical regions store an estimated 55 billion metric tons of CO?, roughly equivalent to four times the annual emissions of the United States. By protecting these lands and enhancing their carbon storage capacity, indigenous communities could generate substantial income through carbon credits, provided the market mechanisms are robust and equitable.
2. Sustainable Agriculture and Forest Products: Indigenous and traditional agricultural practices, such as agroforestry and permaculture, offer sustainable alternatives to conventional farming. These practices can yield high-value products like spices, medicinal plants, and sustainably harvested timber, which have significant market potential when combined with ABS frameworks.
3. Ecotourism and Cultural Heritage: Ecotourism, which respects indigenous rights and involves local communities, has the potential to generate substantial revenue. The ecotourism industry could be worth over $600 billion annually by 2030, with indigenous communities capturing a significant share of this market through culturally and environmentally sensitive tourism models.
4. Bioprospecting and Traditional Knowledge: Indigenous knowledge of plant and animal species, cultivated over millennia, is invaluable for industries ranging from pharmaceuticals to agriculture. ABS agreements ensure that communities benefit from the commercial use of this knowledge. For instance, in Ecuador, an ABS agreement involving the use of indigenous knowledge to develop a new drug generated royalties that funded local health and education initiatives.

Leveraging ABS for Sustainable Wealth Creation

To unlock the full potential of nature-based sustainable wealth creation, several key actions are needed:

1. Strengthening Legal Frameworks: Countries must implement and enforce robust ABS laws to protect indigenous rights and ensure fair and equitable sharing of benefits.
2. Capacity Building and Financial Support: Indigenous communities need technical and financial support to participate effectively in ABS agreements and other sustainable business ventures.
3. Inclusive Market Access: Facilitating market access for sustainably produced goods and services, particularly from remote indigenous territories, is crucial for translating natural capital into sustainable livelihoods.
4. Enhancing Data and Transparency: Better data on the contributions of indigenous lands to global carbon sequestration and biodiversity is essential to demonstrate their value and attract investment in NbS.

Conclusion

Indigenous communities are at the forefront of sustainable land management and hold the key to many nature-based solutions that can combat climate change while generating sustainable wealth.

By supporting indigenous-led initiatives, and their institutions, integrating their leaders to lead on global climate and biodiversity strategies through mechanisms that empower them like ABS, the globe can create a win-win scenario where both the planet and its people benefit.

Embracing the wisdom and stewardship of indigenous communities is not just an ethical imperative; it’s a massive strategy for achieving sustainable development and climate resilience.

With the right policies and international support, indigenous-led nature-based solutions can unlock a more sustainable and equitable future for all.

Key Messages

1. Indigenous and Local Communities

• Recognition of Rights: "Your traditional knowledge is invaluable—let's ensure it is honored and respected. For example, indigenous knowledge in Peru led to the discovery of new medicinal plants, translating into approximately $1 million in annual sales for local communities."
• Equitable Sharing of Benefits: "Fair compensation for your stewardship is essential for our shared future. Transparent permit fees can ensure that at least 30% goes back to local communities, potentially generating millions for local conservation and development projects."
• Involvement in Decision-Making: "Your voice matters—be part of the conversations that shape your resources. Involving local communities in permit fee discussions can lead to a 50% improvement in biodiversity preservation efforts, benefiting both the environment and the economy."

2. Government Agencies

• Compliance with International Agreements: "Adhering to the Nagoya Protocol is a commitment to sustainable development. A structured permit fee system could increase revenue by up to 40%, generating funds to support biodiversity initiatives."
• Biodiversity Conservation: "Implementing ABS can protect our natural heritage and promote responsible resource use. For every dollar spent on conservation from permit fees, we could see a return of $7, significantly benefiting national budgets."
• Economic Development: "ABS can drive economic growth. Permit fees collected could contribute millions to national and local economies, enhancing public services and infrastructure."

3. Researchers and Academic Institutions

• Ethical Research Practices: "Respectful research begins with informed consent. Paying permit fees reinforces ethical practices, maintaining credibility and potentially attracting funding worth millions."
• Collaboration Opportunities: "By working with local communities, we can unlock biodiversity's potential for groundbreaking research. Accessing resources through permits can lead to innovations valued in the millions."
• Contribution to Knowledge: "ABS agreements fuel innovation—investing a portion of permit fees back into community projects can enhance livelihoods and foster research."

4. Private Sector (Biotechnology, Pharmaceuticals, etc.)

• Legal Security: "Secure your investments—ABS agreements provide the legal clarity needed for sustainable sourcing. Companies complying with regulations see a 15% increase in investor confidence."
• Sustainable Business Practices: "Build a brand that stands for sustainability—ethical sourcing and transparent permit fees create a competitive advantage. The market for sustainable products is growing at 20% annually."
• Market Opportunities: "Access unique biological materials through ABS. Fair permit fees can open new revenue streams in a global market projected to exceed $200 billion by 2025."

5. NGOs and Civil Society Organizations

• Advocacy for Rights: "Champion community rights—ABS ensures justice and equitable benefit sharing. Advocating for fair permit fees guarantees communities receive direct compensation."
• Capacity Building: "Empower communities to negotiate fair ABS agreements. Training programs can lead to agreements yielding 50% more in benefits for local communities."
• Awareness Raising: "Educate on biodiversity's importance. Understanding permit fees can increase community support for conservation initiatives by 30%."

6. International Organizations

• Global Biodiversity Goals: "Aligning ABS with global targets is vital for sustainability. Countries with effective permit fee systems can achieve up to 70% of their biodiversity targets through additional funding."
• Support for Implementation: "Investing in ABS frameworks generates more sustainable outcomes. Revenue from permit fees can yield $4 for every $1 spent on biodiversity efforts."
• Facilitation of Dialogue: "We connect voices for effective ABS. Creating platforms for dialogue on permit fees has improved successful ABS agreements by 50%."

Bottom Line Figures

• Economic Contributions: ABS can generate millions in revenue for local and national economies, enhance public services, and contribute significantly to GDP growth.
• Environmental Returns: Effective ABS systems could yield substantial returns on conservation investments, with potential ratios of $7 returned for every dollar spent Springer

..............................................

Policy Advice for Supporting Indigenous Peoples (IPs) in Climate Action and Sustainable Development

1. Strengthen Legal Recognition and Protection of Indigenous Land Rights: Policy Action: Ensure the legal recognition of indigenous territories and customary land rights. Strengthen mechanisms to protect these rights from encroachment and ensure enforcement against illegal activities like deforestation and land grabbing. Rationale: Indigenous communities manage some of the world’s most biodiverse and carbon-rich areas. Securing their land rights not only supports their well-being but also enhances climate mitigation and biodiversity conservation.
2. Implement and Enforce Robust Access and Benefit Sharing (ABS) Frameworks: Policy Action: Develop or strengthen ABS laws and policies that align with the Nagoya Protocol of the Convention on Biological Diversity (CBD). Ensure that indigenous peoples have a clear role in negotiating ABS agreements, and that they receive a fair share of benefits from the utilization of their traditional knowledge and genetic resources. Rationale: ABS frameworks can provide financial incentives and resources for Indigenous communities, encouraging sustainable management and conservation of natural resources while promoting socio-economic development.
3. Incorporate Indigenous Knowledge in National and Local Climate Strategies: Policy Action: Integrate traditional knowledge and practices of indigenous peoples into Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs). This can include traditional agricultural practices, forest management, and ecosystem-based adaptation methods. Rationale: Indigenous knowledge systems offer valuable insights into sustainable land management and climate adaptation. Recognizing and incorporating this knowledge can enhance the effectiveness of national climate strategies and resilience-building efforts.
4. Enhance Participation and Representation in Decision-Making Processes: Policy Action: Ensure the meaningful participation of indigenous peoples in environmental and development decision-making processes at all levels. This includes establishing consultative mechanisms and platforms that are accessible and inclusive for indigenous communities. Rationale: Indigenous peoples are often excluded from decision-making processes that directly impact their lands and livelihoods. Their inclusion ensures that policies are more equitable and effective, addressing the specific needs and priorities of these communities.
5. Provide Financial Support and Capacity Building: Policy Action: Allocate targeted funding and resources for indigenous-led conservation and climate initiatives. Support capacity-building programs to enhance their technical skills, governance structures, and ability to engage in national and international policy dialogues. Rationale: Indigenous communities often lack access to the financial and technical resources necessary to implement sustainable development projects. Direct support can empower them to manage their resources effectively and participate more fully in global climate action.
6. Promote Sustainable Livelihoods through Nature-Based Solutions: Policy Action: Develop policies that support sustainable livelihoods for indigenous peoples through the promotion of nature-based solutions (NbS) like community-based forestry, agroforestry, ecotourism, and sustainable agriculture. Rationale: Indigenous lands are rich in biodiversity and natural resources. Promoting sustainable livelihoods that leverage these resources can improve economic well-being while preserving ecosystems and enhancing climate resilience.
7. Ensure Free, Prior, and Informed Consent (FPIC): Policy Action: Implement policies that guarantee FPIC for any development or conservation project affecting indigenous lands and resources. This includes conducting thorough consultations and ensuring that Indigenous communities have the power to approve or reject proposed activities. Rationale: FPIC is a fundamental right recognized under international law. Respecting this right prevents conflicts and ensures that projects are mutually beneficial and respectful of Indigenous peoples' autonomy and rights.
8. Strengthen International and Regional Collaboration: Policy Action: Engage in international and regional forums to advocate for stronger support for indigenous rights in global climate and biodiversity agreements. Collaborate with other countries to share best practices and build alliances for indigenous peoples' advocacy. Rationale: Global challenges like climate change require international cooperation. Strengthening alliances can amplify indigenous voices and ensure that global policies are inclusive of indigenous perspectives and needs.
9. Support Community-Led Monitoring and Data Collection: Policy Action: Develop programs that support indigenous communities in monitoring and reporting on the health of their ecosystems and the impacts of climate change. Provide technical and financial resources to build local capacity for data collection and analysis. Rationale: Indigenous communities often have a deep understanding of their environments and can provide valuable data for monitoring ecosystem health and climate impacts. Empowering them to participate in monitoring efforts can improve the quality and relevance of environmental data.
10. Develop Education and Awareness Programs: Policy Action: Implement educational programs that raise awareness about the rights and contributions of indigenous peoples to sustainable development and climate action. Include indigenous knowledge and perspectives in school curricula and public

Summary of Benefits

• GDP Contribution: ABS legislation has been linked to the growth of various sectors, such as biotechnology, trade, and eco-tourism, contributing billions to national GDPs.
• Income Generation: Indigenous communities engaged in ABS-related activities often report significant increases in income, improved livelihoods, and better access to markets.
• Cultural Preservation: Beyond economic benefits, ABS has played a critical role in preserving traditional knowledge and practices, fostering cultural identity and community resilience.

Environmental Protection benefits

Access and Benefit-Sharing (ABS) mechanisms promote environmental protection through several key pathways, particularly by fostering sustainable practices, enhancing conservation efforts, and recognizing the rights of indigenous peoples. Here are some ways ABS contributes to environmental protection:

1. Incentivizing Sustainable Use of Resources

• Sustainable Harvesting: ABS frameworks often require that benefits derived from genetic resources be shared with local communities or indigenous peoples. This incentivizes them to engage in sustainable harvesting practices to ensure the long-term availability of these resources.
• Promoting Biocultural Practices: By recognizing and rewarding traditional ecological knowledge and practices, ABS supports sustainable land and resource management, which is crucial for biodiversity conservation.

2. Encouraging Conservation Initiatives

• Funding for Conservation: Revenues generated through ABS agreements can be reinvested into local conservation initiatives, such as habitat restoration, species protection, and ecosystem management. This funding supports biodiversity conservation at the local level.
• Community-Based Conservation: ABS frameworks often empower local communities to manage their natural resources. This community stewardship leads to enhanced protection of local ecosystems and biodiversity, as communities have a vested interest in preserving their environment.

3. Strengthening Indigenous Rights and Knowledge

• Recognition of Indigenous Rights: ABS mechanisms typically acknowledge the rights of indigenous peoples to their genetic resources and traditional knowledge. This recognition promotes environmental stewardship based on indigenous practices, which have historically contributed to biodiversity conservation.
• Integration of Traditional Knowledge: Incorporating indigenous knowledge systems into biodiversity management leads to more effective conservation strategies that are culturally appropriate and environmentally sustainable.

4. Enhancing Awareness and Education

• Community Engagement: ABS initiatives often involve education and capacity-building programs that raise awareness about biodiversity and the importance of conservation. These programs empower local communities to take active roles in protecting their environment.
• Research and Monitoring: ABS agreements can foster research collaborations that contribute to better understanding of ecosystems and biodiversity. This research can inform conservation strategies and policies.

5. Promoting Bioprospecting and Ethical Practices

• Ethical Resource Use: ABS frameworks guide bioprospecting activities, ensuring that genetic resources are collected ethically and sustainably. This approach minimizes environmental degradation and promotes responsible resource use.
• Regulating Exploitation: By establishing clear legal frameworks for accessing genetic resources, ABS can help prevent over-exploitation and illegal trade of biological materials, which are major threats to biodiversity.

6. Supporting Ecosystem Services

• Maintaining Ecosystem Health: Sustainable use of genetic resources under ABS frameworks helps maintain ecosystem services, such as water purification, soil fertility, and pollination, which are essential for environmental health and human well-being.
• Biodiversity Conservation: By promoting sustainable practices and incentivizing conservation, ABS contributes to the overall health and resilience of ecosystems, supporting biodiversity at various levels.

Summary

Overall, ABS promotes environmental protection by incentivizing sustainable resource use, encouraging conservation initiatives, recognizing and empowering indigenous rights and knowledge, enhancing awareness, and regulating resource exploitation. This multifaceted approach fosters a holistic understanding of the interconnectedness between biodiversity, local communities, and sustainable development, ultimately contributing to healthier ecosystems and a more sustainable future.

Extrapolation of Financing Opportunities for Supporting Indigenous Peoples (IPs)

Implementing policies to support Indigenous Peoples (IPs) in climate action and sustainable development can unlock significant financing opportunities across various sectors. Below is an extrapolation of the potential sources and mechanisms of financing that could be mobilized:

1. Carbon Financing and Ecosystem Services Payments:
2. Sustainable Livelihoods and Nature-Based Solutions (NbS):
3. Biodiversity Conservation Funding:
4. Access and Benefit-Sharing (ABS) Mechanisms:
5. Blended Finance Initiatives:
6. International and Philanthropic Funding:
7. Community Development and Social Impact Bonds:

Total Potential Financing Estimate:

Based on the mechanisms outlined, IPs could potentially mobilize substantial new financing by implementing supportive policies and mechanisms. This funding can be used for sustainable development projects, conservation efforts, and community resilience-building, greatly enhancing the socioeconomic status and climate resilience of indigenous communities globally.

Key Actions to Unlock Financing:

• Develop Clear Policy Frameworks: Establish robust legal and policy frameworks that recognize IP rights and provide clear guidelines for accessing financing mechanisms.
• Enhance Institutional Capacity: Build capacity within IP organizations to engage with financing mechanisms, negotiate agreements, and manage funds.
• Promote Partnerships: Foster partnerships between IPs, governments, the private sector, and NGOs to co-design and implement projects.
• Leverage Global Platforms: Advocate for increased funding for IPs through global climate and biodiversity platforms, ensuring that IPs are recognized as key stakeholders in sustainability efforts.

By creating a supportive environment and enabling IPs to access and manage these financing streams effectively, the potential for impactful and sustainable development is substantial.

[1] State of Finance for Nature 2023 | UNEP - UN Environment Programme Also see The figure of over $4 trillion per year in economic benefits by 2030 from implementing Nature-based Solutions (NbS) is supported by several reports. The UNEP's "State of Finance for Nature 2021" report emphasizes the need to triple investments in NbS by 2030 to address the climate, biodiversity, and land degradation crises. It highlights that closing a $4.1 trillion financing gap by 2050 is crucial to achieving global environmental targets. This economic potential is derived from sectors like sustainable forestry, agriculture, and ecotourism, which can significantly contribute to human well-being and prosperity if properly invested in(UNEP - UN Environment Programme ).

Additionally, the UN News report outlines that G20 countries need to increase their annual investments in NbS to $285 billion by 2050 to help close this financial gap, underscoring the substantial economic and environmental benefits of scaling up NbS globally(UN News ).

For the role of Indigenous communities, traditional knowledge systems and sustainable practices indeed position them uniquely to lead NbS initiatives, particularly through Access and Benefit-Sharing (ABS) agreements, which help ensure that communities benefit from the use of their knowledge and resources. This integration can drive sustainable economic growth and strengthen resilience to climate impacts.

?Bioeconomy in Brazil can generate US$ 284 billion in revenue per annum - Portal Embrapa