Directing climate finance to Indigenous Peoples and local communities is essential because they are the frontline stewards of the world’s most critical ecosystems, including forests, wetlands, and grasslands that are vital for global climate stability. These communities possess traditional knowledge and sustainable practices honed over generations, which are crucial for effective climate action. By channeling funds directly to them, we empower these communities to implement climate solutions that are locally relevant, culturally appropriate, and environmentally sound. This not only enhances the resilience of their lands and livelihoods but also contributes significantly to global efforts in mitigating and adapting to climate change.  

Moreover, direct climate finance to Indigenous Peoples and local communities ensures that the benefits of climate action are equitably distributed and that these communities are not marginalized in global climate governance. This approach respects their rights to self-determination, including the right to Free, Prior, and Informed Consent (FPIC) of Indigenous Peoples - enshrined in the UN Declaration on the Rights of Indigenous Peoples - and ensures that climate initiatives do not lead to land dispossession or cultural erosion. Supporting Indigenous and local-led climate actions also addresses broader issues of social justice and equity, as these communities are often among the most vulnerable to the impacts of climate change. By investing directly in their capacity to lead and innovate, we foster a more inclusive and just transition to a sustainable future.