Without Land Justice and Social Equity, Carbon Markets Will Fail

Carbon Markets Are Here to Stay—Institutions underpinning them must be sound

The Intergovernmental Panel on Climate Change projects that limiting global warming to 1.5°C will require large-scale carbon dioxide removal in addition to emissions reductions. Many governments have developed carbon market policies and actively seek investments in carbon removal projects, especially as other forms of climate finance remain elusive. 

At the 29th United Nations Climate Change Conference (COP 29), one major outcome was agreement on Article 6 of the Paris Agreement, which regulates carbon credit trading between parties. These and other developments suggest that carbon markets are here to stay, despite concerns about their effectiveness in tackling global emissions, and their impact is also likely to expand. 

Indeed, carbon markets are driving a proliferation of land-based projects and investments aimed at capturing, removing, and storing carbon emissions, including through tree planting and forest protection. Such projects now span 24 million hectares, about the size of Uganda. Notably, over 90% of these projects were registered after 2017, underscoring the rapid expansion of land-based carbon initiatives. For reference, the land area that is covered by carbon offset projects already stands at 80% of the land area of agricultural land acquisitions between 2000 and 2020. 

Concerningly, many of these investments in land-based carbon sequestration are being made in places where land tenure security is weak and where the communal rights of those managing forests and ecosystems are neither acknowledged nor protected. In such contexts, irresponsible investments in carbon credits can lead to people losing their land and livelihoods. 

In response to such risks and the advocacy by communities, some governments are improving their legal and policy frameworks on international carbon markets and non-market approaches. Verra, the world’s largest carbon standard, is revising its rules (Version 5). Justice networks, including Namati and the Grassroots Justice Network, have submitted recommendations calling for stronger safeguards, clear recognition of land and carbon rights, and greater transparency and benefit sharing. The risks and shortcomings of current carbon market practices are clear. 

It is, therefore, critical to engage with the design of carbon markets at national and global levels and the implementation of projects that generate carbon credits to ensure that they meet the necessary conditions for responsible investments.

Land Rights and Climate Action Are Mutually Reinforcing

While agreement on Article 6 of the Paris Agreement is recent, the struggle to secure land rights for Indigenous Peoples, local communities, and women is not. It builds on decades of global agreements, progressive national policies, and established tools and frameworks. Research shows that communities can be effective stewards of land and natural resources when supported by an enabling environment. Securing their land rights is therefore not only a human rights obligation—it is the foundation for sustainable land management practices. In the absence of secure land rights, net-zero policies risk failing to achieve their objectives.

The Human Rights Basis for Just and Equitable Carbon Markets

A persistent challenge remains: carbon market-related projects and investments are proliferating faster than efforts to equip affected communities to engage with them effectively. It is crucial to systematically support community-based and civil society organizations so they can empower communities to act as agents in carbon markets. However, in many contexts, this support is lacking, and often, no grievance or accountability mechanisms exist. Shrinking democratic space further restricts communities’ ability to engage in advocacy. For carbon markets to operate with integrity, actors must proactively help create an environment in which these organizations can operate safely.

This cannot depend on goodwill alone. Companies have a responsibility to respect human rights, a responsibility that exists independently of a state’s capacity or willingness to uphold its obligations. This is especially important in rural areas, where states often lack the ability to ensure good governance.

Moreover, parties to the United Nations Framework Convention on Climate Change (UNFCCC) have already adopted binding human rights agreements, such as the rights to food and housing. Their carbon market policies must reflect these obligations.

Robust Land Laws and Policies Are Critical

Across Africa, several governments have enacted progressive land laws that recognize and protect customary and collective land rights. Legal recognition of women’s land rights is also advancing. Many countries already have frameworks in place that cover key elements of responsible carbon market development, such as ensuring that Indigenous Peoples and local communities have the right of Free, Prior, and Informed Consent. These laws and policies now need to be systematically linked with emerging national carbon market policies.

Comprehensive, robust, well-enforced laws remain the best way to ensure that investments related to carbon markets respect the rights of legitimate tenure holders, ensure local community involvement in decision making, promote local food security, and contribute positively to building climate resilience. Adequate enforcement mechanisms are also needed to ensure these laws are followed.

Making Use of Available Guidance to Promote Responsible Carbon Investments

Guidance exists to support governments in Africa and elsewhere to improve their legal and policy frameworks governing carbon market-related investments, including by introducing safeguards to prevent forced displacement, land dispossession, and loss of access to food and other resources, and mandating equitable benefit-sharing arrangements. For example, Namati and the Grassroots Justice Network have developed a policy toolkit to support the development of robust laws and policies that advance carbon justice.

Governments and investors can also draw on a wealth of guidance and tools to promote responsible land-based investments, including for investments in carbon sequestration. In this regard, the African Land Policy Centre developed the Guiding Principles on Large-Scale Land-Based Investments in Africa, while the International Institute for Sustainable Development has produced practical guidance on the use of memorandums of understanding and model contracts as legal instruments that can help mitigate risks associated with land-based investments, including in contexts where national legislation is not yet sufficiently robust. Model contracts can be a useful tool for highlighting risks associated with investment projects, and for ensuring that carbon investments are made responsibly and inclusively, on fair and equitable terms, and include safeguards to protect the rights and livelihoods of local communities. Implementing this guidance remains an ongoing challenge, but securing land rights for just and equitable carbon markets does not need to start from scratch.

Taking This Discussion to the Second Africa Climate Summit and Africa Climate Week 2025

Within climate policy circles, the impact of carbon markets and net-zero strategies on land and land rights is still a relatively new area of discussion. Furthermore, discussions on climate policy and land governance often occur in separate forums, creating a risk of disconnection. It is vital to bring these discussions together.

The moment is right to advance human rights-based guidance and safeguards for just and equitable carbon markets.

 

We believe the moment is right to advance human rights-based guidance and safeguards for just and equitable carbon markets. The UNFCCC workshop Unlocking Finance: Accelerating NDC Implementation through Carbon Markets in Africa offers one crucial opportunity. At the 2nd African Climate Summit, the New Partnership for Africa's Development will launch consultations on the African Integrity & Equity Principles for Carbon Markets. These are just two examples: more will follow in the run-up to COP 30 in Belém.

Let us jointly shape these discussions to create carbon markets that advance both climate and land justice.

This article was inspired by the webinar on Securing Land Rights and Social Equity in the Pursuit of Net Zero, jointly hosted by the International Institute for Sustainable Development, the Robert Bosch Foundation, and TMG Think Tank for Sustainability ahead of the 2nd African Climate Summit and Africa Climate Week 2025.

Both the webinar and this article benefited from the insights of the following distinguished speakers: Providence Mavubi (Director, Industry and Agriculture Development, Common Market for Eastern and Southern Africa), Andrew Y. Y. Zelemen (Head of Secretariat, National Union of Community Forestry Development Committees, Liberia), Dr. Joan Kagwanja (Chief, African Land Policy Centre, United Nations Economic Commission for Africa), Benard Opaa (Deputy Director, Natural Resources and Environment, Kenya National Land Commission), Anne Njoroge (Senior Climate, Land, and Environmental Justice Officer, Namati), and Nyaguthii Maina (Associate and International Law Advisor, International Institute for Sustainable Development). We sincerely thank them for their excellent contributions.