Indigenous Leadership

Direct Climate Finance for a Sustainable Future

UNDP’s Commitment to Supporting Direct Access to Climate Finance for Indigenous Peoples and Local Communities

Why Indigenous Peoples are Key to Climate Action

Indigenous Peoples manage around 25 percent of the world’s land, which contains much of the planet’s biodiversity and the carbon stored in soil and biomass. A large majority of this land is covered by forests that are central to the traditions, cultures and livelihoods of 70 million Indigenous Peoples, who provide environmental stewardship to at least 36 percent of the world’s intact forests. Many of these high-integrity forests are found in tropical regions, which are home to many Indigenous communities.

Photo: UNDP Cambodia/Thida Prak

Photo: UNDP Cambodia/Thida Prak

Photo: UNDP/ Roxana Auhagen

Photo: UNDP/ Roxana Auhagen

Recognizing their crucial role in combating climate change, nations like the UK, Norway, Germany, the Netherlands, the U.S.A., alongside 17 other funders, committed US$1.7 billion at COP26 to support Indigenous Peoples and local communities. This pledge highlights their proven success in preventing deforestation – a key driver of climate change – and promises to deliver funding directly to these communities, ensuring they have a say in shaping climate programs and financial mechanisms.

The Power of Direct Grants to Strengthen Indigenous Climate Leadership

Direct grants are essential in supporting Indigenous communities to take the lead in climate initiatives. Unlike conventional funding models, which often impose external agendas, direct grants provide the financial resources and autonomy needed for Indigenous Peoples to design, implement, and scale solutions that are rooted in their deep cultural and environmental knowledge, for example their own, self-determined Life Plans. These grants allow communities to set their own priorities, fostering innovation, enhancing resilience, and preserving biodiversity while respecting Indigenous rights and sovereignty. This approach builds trust, strengthens partnerships, and supports long-term, sustainable climate leadership—ensuring that those most connected to the land can continue to protect it for generations to come.