Our Benefits Sharing Approach

Since 2009, WeAct has successfully embedded grassroots community development activities into its nature and technology-based carbon projects, resulting in a wide spectrum of both financial and non-financial benefits delivered to the communities, environments and economies in which we work.

Our Carbon+ project model facilitates sustainable development through community empowerment, capacity building and the provision of carbon incomes. It seeks to provide a financially, socially and environmentally desirable income generation mechanism by building carbon projects that:

• apply a bottom-up, local approach to project management;
• establish commercially viable pathways to develop carbon credits;
• reinvesting revenues into long-term, sustainable community development opportunities;
• seek payment for the environmental services created by the stewardship of healthy ecosystems; and
• compensate landholders directly for their contributions to the environmental services delivered.

WeAct uses carbon finance to deliver sustainable development benefits to all community members – not just those at the top.

The Carbon+ approach is based on the concept of equity, in that we are seeking to develop projects that provide local and First Nations communities with the right tools and resources to address the unique inequalities they face in their day to day lives.

Delivering equitable outcomes requires a deep understanding of the individual historic, cultural, political, geographic, economic and environmental context of communities we are engaging with, and so where possible, we build our own in-country teams, work with local NGO partners, and build direct relationships with community leaders and with members at all levels.

Equity also demands that communities retain their autonomy of decision-making and agreeing to contractual terms, and so we work to provide enough information in culturally-appropriate language and timeframes that enable them to make informed decisions about how they wish to participate in our projects.

More information about our community engagement approach can be found here.

More information about our Free, Prior & Informed Consent (FPIC) approach can be found here.

WeAct aims to develop partnerships with local communities and landholders, and implements a transparent and accountable governance model as part of this process. In addition to complying with project methods, reporting and standards, and jurisdictional regulations, we establish a project Governance Board, with equal representation by communities and WeAct.

The Governance Board consists of 6 members, with three local appointments made by communities, and three appointments made WeAct). This board is responsible for overseeing the establishment of project operations, providing financial oversight, facilitating project reporting to WeAct and communities, as well as ensuring that agreements are kept and goals are met.

In making appointments, communities are supported in:

• implementing transparent procedures for election, delegation and/or replacement of community representatives;
• ensuring the interests of both men and women are represented on the board;
  from within the project area. (WeAct recommends that the LRO appoint at least one Women’s representative to the Governance Board); and
• supporting the ongoing ownership that landowners and communities have over their carbon, land and related assets.

Communities also help decide how frequently the board should meet, and how project information and board decisions should be communicated to landowners.

The proportions of financial and non-financial benefits will change from project to project, however this mix of benefits returned to landholders and communities will always represent the majority of carbon revenues earned from the project (through the sale of carbon credits). The founding principles of our Carbon+ model are that:

1. every person belonging to the project area must receive a direct benefit in recognition for their participation and support; and
2. landowners must agree to set aside a proportion of their income for community development projects.

This foundation ensures tangible connection between communities and projects, and ensure that project benefits endure beyond the project lifetime. These benefits may include funding for a range of community initiatives, including (but not limited to):

• project-related jobs, training and capacity building;
• infrastructure projects (e.g. schools, medical centres, roads, manufacturing facilities);
• communication and other technologies (e.g. internet connection to support local education);
• microfinance to support livelihoods (e.g. repair of boats for fishing villages); and
• establishment of new industries (e.g. ecotourism and hospitality).

The mix of benefits and their delivery are decided through engagement and consensus building with communities, with management and monitoring frameworks codified across contractual agreements between landowners/communities and WeAct, and in governance board rules/procedures.

WeAct finances the majority of project registration, compliance and operational costs in return for a minority share of project revenue, however landowners and communities do bear some costs, including:

• In preparing themselves for project participation:
  • registering their land in readiness for a project (e.g. under relevant land titles if required),
  • registering a Landowner Representative Organisation (if such structures are not already established)
  • legal costs associated with entering into a project agreement (e.g. independent legal/financial advice)
• In participating in the project:
  • any internal community administrative costs to manage the community’s ongoing participation (can be funded from project revenues shared as benefits once the project commences)
  • Any specific operational costs associated with benefits defined in the project agreement (e.g. local project team jobs that can be funded from project revenue once the project commences).

Both costs and benefits are discussed transparently as part of community engagement and FPIC processes, which is critical to providing clarity and ensuring financial health of the project and communities over the long-term.

Our Commitment

We are committed to equitable benefits sharing that return the majority share of benefits to the communities in which we work and reduce emissions. We endeavour to be transparent and open with our stakeholders, and ensure that all landowners, families and communities receive due benefits for their participation, regardless of their status within community hierarchy.

We’re excited to drive real benefits to communities, that remain and support livelihoods long after we are gone.