Safeguards, Co-Benefits & SDGs
Last updated
Last updated
The environmental and social problems we face are interconnected. When crafting environmental solutions, it is vitally important to consider the ways that solving one problem might create another one and take steps to prevent this.
At a very basic level, projects should be created in such a way that creates no net harm to any element of the environment or society.
In order to assess the potential level of harm, project proponents should conduct risk assessment tests. Project developers should review IFC Safeguard Standards to get more detailed guidance on how to conduct risk assessments. The standard defines risks in this context and where they can come from.
Risks can come directly or indirectly from the activity’s operations. They can also arise from unplanned but predictable developments. They can also be completely indirect impacts resulting from activities using certain resources.
Through conducting a risk assessment, project developers should discern the necessary safeguards that must be adhered to in order to mitigate risk.
Project developers should identify how these risks apply to their activities and create a management protocol to mitigate these risks.
Of particular importance is how project developers address risks with respect to impacting indigenous and marginalized communities. Project developers must also have thorough stakeholder engagement plans, including how to address and improve upon grievances. Specifically, project developers must consider how their projects impact indigenous communities and declare plans to share the benefits of their practices with land practitioners.
In order to ensure that the most robust work is being done here, project developers must familiarize themselves and adhere to social and environmental safeguards. They can start by referencing these 10 areas as identified by Calyx Global. Safeguards are going to be project-specific, and it is ultimately up to the project developer (along with support from standard-setting bodies and third parties with expertise where needed) to ensure they have an understanding of the local context and potential impacts of their work.
This means deeply understanding the local land use regulations and management methods relevant to the landscape, particularly for REDD+ and land-based projects.
Co-benefits
The idea of “do no harm” can be taken a step further. Co-benefits refer to how a project provides additional services to biodiversity and the community. This includes how a project promotes ecosystem services and biodiversity or provides jobs to local communities while also making a meaningful carbon reduction. These impacts might look different depending on the project type. For example, nature-based solutions will likely be able to provide additional well-being to the surrounding ecosystems, while tech-based projects can offer job opportunities.
Benefit sharing offers a fair way to distribute revenue or other forms of carbon credits, especially when projects directly impact a piece of land that’s being utilized by marginalized or low-income groups of people (such as indigenous peoples, farmers, and rural communities). Revenues from credits can help generate sustainable infrastructure needed by the community and make it more resilient to climate change. That being said, revenues alone might not be the only way to share benefits with communities. This can help foster trust between project developers and the community, which is important for long-term projects [source].
Sustainable Development Goals (or SDGs) were established by the UN Development Program to provide a framework for tackling the biggest issues facing humanity today. The idea is for countries to prioritize these goals by encouraging institutions and organizations to conduct business in a way that supports as many of these goals as possible. There are 17 key issues that focus on themes such as Biosphere, Society, and Economy. Project developers should consider how their projects help or potentially hurt efforts toward reaching these goals.
How are Sustainable Development Goals measured?
There are different ways of assessing how a project aligns with these goals. A project developer can reference the list of indicators for each goal to discern how their project fits in. Project developers should especially consider ways to go above and beyond Goal 13 (Action against climate change).
SDG impacts must be monitored and quantified ex-post and validated by a VVB.
