This guide seeks to provide clear and effective guidelines for developing projects focused on high-integrity Nature-based Solutions (NbS) in the context of the VCM.
Merida, Yucatán, 11 September 2024 — The Government of the State of Yucatán in Mexico, in collaboration with Climate Focus, the Voluntary Carbon Markets Integrity Initiative (VCMI), and UNDP, proudly announces the launch of the “Best Practice Guide for Developing Projects in the Voluntary Carbon Market in Yucatán”. This strategic tool is designed to guide companies, investors, civil organizations, and local communities in developing Nature-based Solutions (NbS) projects with high social and environmental integrity.
Yucatán, uniquely located on the Peninsula between the Gulf of Mexico and the Caribbean, harbors invaluable ecosystems such as tropical forests and mangroves. These ecosystems, however, are threatened by human activity and climate-related disturbances. 64 percent of the state’s forested area shows some degree of degradation. The Yucatán government recognizes the need for concrete actions to reverse this trend and is implementing a set of climate and environmental policies. The VCM is, therefore, an instrument with the potential to help Yucatán achieve its sustainable development goals.
In Yucatán, as elsewhere in Mexico, local communities and ejidos1 own vast areas of land and forests and play a critical role in ecosystem conservation and restoration. Their collaboration is key to the development and long-term success of carbon projects. These communities, often facing poverty and adverse climate-related risks, stand to benefit from the opportunities carbon projects can provide. However, recent critiques of the VCM raised concerns about the protection of local rights and the true effectiveness of these projects in addressing environmental and social issues. Through this Guide, the Government of Yucatán aims to ensure that local communities and ejidos are the primary beneficiaries of VCM initiatives and that those comply with social and environmental integrity.
Additionally, private sector actors increasingly seek guidance from state agencies to understand the role of national and subnational regulations that could affect the development and sustainability of carbon projects.
To address these needs, the Government of Yucatán cooperated with VCMI, Climate Focus and UNDP and developed a tool with clear actions and guidelines on five key aspects for developing a carbon project in the region:
- Criteria to ensure high-integrity projects comply with the existing legal and political considerations in Mexico;
- Concrete steps within the carbon project cycle, from the design phase to the issuance of carbon credits;
- Social and legal considerations for developing NbS activities in Mexico to ensure the active participation of communities and ejidos and guarantee their free, prior, and informed consent;
- Mechanisms to ensure that the benefits are distributed fairly and equitably between actors involved;
- Criteria for achieving equitable and transparent agreements in contracts between investors and communities and ejidos.
The Best Practice Guide for Developing Projects in the VCM in Yucatán is the result of an inclusive and participatory process. Workshops and consultations were conducted with the federal government, communities, non-governmental organizations, and private sector representatives, ensuring that the Guide meets the needs and expectations of all actors involved in carbon projects in Mexico.
Lessons learned will be shared with other Mexican states and jurisdictions that aim to play a key role in boosting the VCM’s opportunities and face similar challenges.
At a time when the VCM has been subject to controversy due to concerns about a lack of integrity, Yucatán positions itself at the forefront by ensuring that the highest environmental and social standards govern projects in its territory. This Guide underscores the importance of developing projects that not only meet their climate mitigation objectives but also respect and benefit local communities and preserve biodiversity.
The “Good Practices Guide for Developing Projects in the Voluntary Carbon Market in Yucatán” is available for download on the official websites of the Yucatán State Department of Sustainable Development, VCMI, Climate Focus, and UNDP. The Guide is currently only available in Spanish, an English translation is forthcoming.
Quotations:
Diana Pérez Jaumá, Secretary of Sustainable Development of the Yucatán State Government, stated:
“This product, which is part of the commitments and objectives set forth in the Ecosystem Recovery and Conservation Strategy, is an effort made jointly , between the government sector, civil society organizations, academy, private initiative and of course the communities. With this Guide we take one more step to ensure that this mechanism complies with criteria of integrity, transparency and equality so that it can contribute to environmental conservation while generating positive impacts and economic and social benefits for the local communities of Yucatán as well as fair contracts and benefit share schemes and free and informed decision making”.
Mark Kenber, Executive Director, VCMI:
“Yucatán’s commitment to high-integrity carbon projects sets a new standard for climate action, ensuring that every initiative delivers real and lasting benefits for the people and ecosystems of Yucatán. This guide marks a pivotal moment in the evolution of Voluntary Carbon Markets in Mexico and will empower stakeholders to develop projects that not only meet rigorous climate goals but also respect and strengthen the rights and livelihoods of local communities.”
Carolina Inclan, Senior Consultant, Climate Focus:
“This effort presents critical steps to ensure that carbon projects in Yucatán are not only environmentally sustainable but also socially equitable. It sets clear guidelines for engaging local communities and ejidos, ensuring they are key beneficiaries of these initiatives while also navigating Mexico’s regulatory landscape to attract private investments. We aim to share these insights with other regions, demonstrating how governments can help drive high-quality investments that deliver both social and environmental benefits.”
Leticia Guimaraes, Head of Carbon Markets at UNDP, stated:
“UNDP is proud of its long-standing collaboration with the State of Yucatán and its partners to support the state in achieving its goals of sustainable development. The collaboration with the private sector and local communities through high-integrity carbon markets has the potential to generate substantial private investments for ecosystem conservation and restauration as well as social development. Together with our partners, we are committed to boost integrity in carbon markets for the benefit of people and planet.”
Explore the full guide here:
