Safeguards, Co-Benefits & SDGs
Our approach on safeguards and co-benefits is integrated with RMI's Carbon Crediting Data Framework
The environmental and social problems we face are deeply interconnected. Designing solutions that address these issues requires careful attention to avoid creating new problems while solving existing ones. This principle is embodied in the phrase: "Do no harm."
All projects must adhere to all relevant international conventions, as well as national and local laws. Failure to do so will affect project eligibility and credit issuance.
Beyond adhering to basic laws and covenants, steps must be taken to ensure that projects are developed in a way that minimizes harm to both the environment and society. To achieve this, project developers must:
Conduct Environmental and Social Risk Assessments
Project developers must carry out thorough environmental and social risk assessments aligned with IFC Safeguard Standards. These assessments must identify, evaluate, and address potential adverse impacts associated with the project — both direct and indirect.
Project developers must review the IFC Safeguards and will be asked to provide details on how they implemented these assessments as part of their project proposal, which will be made publicly available during public commentary and after validation.
Developers must engage local stakeholders early in the process to better understand potential effects on communities, ecosystems, and livelihoods. Risks may arise not only from core activities but also from predictable yet unplanned developments.
Assessments will inform the design and implementation of appropriate safeguards to prevent, reduce or manage harm.
Project developers must describe how they plan to implement their identified procedure to mitigate these risks, as well as how they plan to monitor them throughout the project’s duration (see below for more information on monitoring).The assessment must include a plan for ongoing monitoring, as environmental and social conditions might change throughout the project.
Have a Robust Stakeholder Engagement Processes
Project developers must design and implement a comprehensive stakeholder engagement process that prioritizes meaningful participation, especially from Indigenous Peoples and other marginalized or vulnerable communities who may be affected by the project. This process must demonstrate a genuine commitment to transparency, responsiveness, and benefit-sharing.
Key components include:
Stakeholder Engagement Plans: Developers must establish a clear plan outlining how stakeholders will be identified, engaged, and kept informed throughout the project lifecycle. Special attention must be given to groups that may face barriers to participation.
Consultation Meetings: Prior to implementation, project proponents must conduct collaborative, inclusive consultation meetings to inform stakeholders, solicit feedback, and address concerns. These meetings must:
Be conducted in the local language(s) and tailored to the cultural context;
Be publicized through both traditional and digital media with ample notice to encourage broad participation;
Include a compensation mechanism for community/stakeholder time, whether in the form of direct money transfer or other benefits which assist in breaking the participation barrier due to economic and time constraints;
Be thoroughly documented with transcripts made publicly available to support transparency and accountability, if applicable.
Grievance Mechanism: A clear, accessible grievance redress mechanism must be in place.
Project developers must make contact information readily available and maintain an open line of communication throughout the project duration.
They must have a clear plan for incorporating grievances and feedback into their operations that gets articulated to the stakeholders.
Benefit-Sharing Commitments: Project developers must establish and implement equitable benefit-sharing arrangements with Indigenous Peoples and local communities affected by project activities, where applicable.
These plans must reflect community priorities and demonstrate how benefits—whether financial, infrastructural, or capacity-building—will be distributed fairly and transparently. Benefit-sharing agreements must be made in conversation with stakeholders to ensure their needs are met while establishing long-term trust, per the consultation guidance outlined above.
Benefit sharing could include: funding sustainable infrastructure, enhancing community resilience to climate change, or fostering job creation.
In the case of financial benefit sharing, plans must include details on whether payment is a portion of revenue or profits, how contracts will be honored (e.g. bank transfer or cash), and the timeline of payments must be co-developed and well understood by community partners.
Benefit-sharing arrangements must be documented in a formal Benefit-Sharing Plan, which describes how project benefits are designed, governed, and distributed in a manner that is appropriate to the local context and consistent with applicable national laws, regulations, and land-use frameworks.
Drafts must be continuously shared and improved upon by engagement with stakeholders, particularly Indigenous Peoples and local communities impacted. All final plans must be communicated in a form, manner and language appropriate for them. Project developers will be required to provide evidence of this being completed and made transparent and accessible in their validated project proposal flow.
Benefit sharing provisions will be required to be outlined in the project proposal flow and third-party validated, as well as be made publicly available.
Mitigate Risks with Safeguards
After identifying potential environmental and social impacts, project developers must develop management protocols to mitigate these risks effectively. This includes steps to identify effective measures to prevent and minimize any identified risks. Plans for management of these risks are required in the project proposal flow and subject to third-party validation. While safeguards are project-specific, developers must:
Do the work to understand local contexts, including land use regulations, policies, and management methods (especially for REDD+ and land based projects).
Seek guidance from reputable sources to gain a background knowledge of key safeguard areas.
Incorporate FPIC (free, prior and informed consent) principles, which are explained in detail by Conservation International at this link.
'Free' means indigenous peoples' consent cannot be given under force or threat
'Prior' means indigenous groups must receive information and have time to review it before the activity begins
'Informed' means the information provided is detailed, emphasizes both potential positive and negative impacts, and is communicated in a language and format understood by the community
'Consent' means the right of the community to agree or not agree to the project before it begins, and throughout the life of the project.
Ensure they are aligned with international laws. Project developers must comply with all relevant international conventions and agreements ratified by the host country that pertain to human rights, labor, Indigenous Peoples, and environmental protection, in addition to the specific safeguards outlined in this Handbook.
Specifically, project developers must review and align to the UN Declaration on Rights of Indigenous Peoples, the International Bill of Human Rights, ILO Convention 169 on Indigenous and Tribal Peoples, and all other host-country ratified treaties or agreements.
Specific Safeguards and Co-Benefits Categories for Projects Proposed on the OCP
Stakeholder Engagement, Human Rights and Indigenous Peoples
Stakeholder Engagement Process
Project developers must identify all local communities, Indigenous Peoples and governments who may be directly or indirectly affected by the project. This includes:
Mapping of local communities and Indigenous territories within or near the project boundary.
Documentation of all identified stakeholders and their respective rights claims.
Specifically documenting and recognizing 'carbon rights'
Project developers must ensure their feedback was recorded and incorporated, and that diverse and marginalized voices were included
Indigenous Peoples and Local Communities (IPLCs)
Project developers must demonstrate respect for the rights, interests, and livelihoods of Indigenous Peoples and local communities.
Project developers must ensure they're aligning with FPIC (free, prior and informed consent) principles during project consultations.
Projects must show how Indigenous and local knowledge has been incorporated into project design and monitoring, particularly when it affects land use, natural resource management, or community resilience.
Cite specific consultations or collaborations with traditional knowledge holders.
Include co-developed approaches or monitoring practices where relevant.
Respect for Rights and Cultural Heritage
Proponents must identify and assess any indirect or unintended impacts on IPLCs or their cultural heritage. This includes:
Potential changes in land use patterns, migration, economic displacement, or increased pressure on local resources.
Provisions to monitor these risks over time and implement corrective actions when needed.
Clear articulation of how Free, Prior, and Informed Consent (FPIC) principles were applied, where relevant.
Where applicable, the developer must adhere to recognized frameworks such as community-led heritage management plans and the UNESCO Convention for the Safeguarding of Intangible Cultural Heritage, prioritizing free, prior, and informed consent (FPIC) and locally defined values of cultural significance.
Land and Territories
Project developers must prevent negative impacts on land or territorial rights of Indigenous Peoples and local communities, including economic or physical displacement. This means avoiding displacement of Indigenous Peoples and local communities first. These impacts include:
Economic displacement includes loss of land, access to assets, income sources, or means of livelihoods due to project activities.
Physical displacement includes evictions, acquisition, rehabilitation, demolition of property, or expiration of covenants housing.
Project developers must describe any potential reasons for economic or physical displacement due to implementing their project. They must describe their plans to address these risks and provide documentation of mitigation plans for physical and economic displacement.
If avoidance of displacement is not feasible and communicated following FPIC processes, project developers must ensure any economic and physical displacement is minimized.
Where necessary, projects must make a substantial effort to provide adequate shelter, safety, education and economic opportunities for those affected.
Projects must demonstrate there are no adverse impacts to land and territorial rights. This includes:
Procedures to confirm legal or customary land rights are not infringed upon.
Independent verification of land tenure status, including Indigenous claims.
Mechanisms to resolve land disputes fairly and transparently.
Labor Rights and Working Conditions
Legal Compliance
Project developers must protect and uphold legal rights of workers, including those related to working conditions, freedom of association, non-discrimination, and equal opportunity. They must demonstrate adherence to international standards and national local laws and be able to produce relevant labor rights documentation.
Health and Safety
The health and safety of workers must be ensured by project proponents. This includes providing safe and healthy working conditions and strategies to prevent or mitigate potential adverse health impacts.
Fair Treatment and Non-Discrimination
Project developers must not discriminate. They must ensure equal opportunities.
Child and Forced Labor Protections
Projects must not be associated with child labor or forced labor, either directly through project activities or indirectly through relevant supply chains.
Projects must not employ, contract, or otherwise engage children under the age of 15, or a higher minimum age where required under applicable national law, and must comply with relevant international labor standards.
Project developers must be able to provide documentation that children under the age of 15 are not employed or economically exploited, exposed to health conditions, or negatively impacted in terms of education or social development.
Forced labor of any kind associated with the project or supply chain is prohibited. Projects must comply with international labor standards, including ILO Convention No. 29 and ILO Convention No. 105 as well as applicable national labor laws.
Project developers must assess the risk of child labor exploitation and forced labor throughout their supply chain during social risk assessments and have plans in place to safeguard against these risks.
Contract Workers' Rights
Contract workers must also be protected. Workers are allowed to join or form worker's organizations without retaliation.
Equity and Inclusion
Project developers must ensure that project activities are designed and implemented in a manner that prevents and addresses discriminatory impacts across all stages of the project lifecycle.
Projects must not result in discrimination, exclusion, or unequal treatment of individuals or groups on the basis of protected characteristics, including but not limited to race, ethnicity, Indigenous status, gender, age, disability, religion, nationality, sexual orientation, or other legally protected status, consistent with applicable national law and relevant international human rights standards.
This non-discrimination requirement applies across all mitigation activities. Project developers must assess potential risks of discriminatory impacts, particularly for marginalized or vulnerable groups, and must implement measures to prevent, mitigate, and remedy such impacts where identified.
Gender Equity
Projects must demonstrate that gender equity and social inclusion are fully integrated into governance, design, and implementation.
Projects must ensure meaningful participation of women, non-binary, and gender-diverse individuals in governance and decision-making processes.
Projects must provide equal economic opportunities across all genders and ensure non-discriminatory hiring, promotion, and wage practices.
Projects must adopt a zero-tolerance policy for sexual harassment and gender-based violence, in accordance with international human rights standards.
Projects must ensure that benefits (e.g., job creation, capacity building, financial returns, land access) are equitably distributed and accessible to all genders.
Projects must also disclose from where, and to what extent, they are using frameworks to monitor gender-related impacts, if used (e.g. W+ frameworks, UN Women frameworks, country-specific frameworks).
Community Benefits
Local Employment & Economic Inclusion
The project must describe how it contributes to local employment and economic benefits, including:
Hiring practices that prioritize local communities.
Support for local enterprises, supply chains, and workforce development.
If relevant, projects must develop a formal benefit-sharing plan with affected communities.
If so, project developers must share the plan's design, how it was communicated, and how it was made accessible and transparent. See above for more information.
Alignment with Cancun Safeguards
For all projects implementing REDD+ activities, alignment with the Cancun Safeguards is mandatory.
REDD+ project developers must demonstrate consistency with the safeguards set out in paragraph 71 of Decision 1/CP.16 of the UNFCCC, as well as any subsequent relevant UNFCCC decisions or host-country REDD+ frameworks that operationalize these safeguards.
Project documentation must clearly describe how each relevant safeguard under paragraph 71 of Decision 1/CP.16 is addressed, including references to applicable national laws, REDD+ strategies, or safeguard information systems where relevant.
Evidence demonstrating compliance with the Cancun Safeguards must be included in the validated project design documentation prior to registration, and must be maintained and updated over the project lifecycle as applicable.
Resource Use
Project developers must identify and minimize potential impacts associated with resource use during project design and implementation, including on:
Water Use and Efficiency
Projects must manage water use in a manner that prevents or minimizes negative impacts on local water resources, including surface water, groundwater, and associated ecosystems.
Projects must ensure they are minimizing water consumption and using water efficiently, so that their projects do not place an added stress on water sources.
Project developers must assess whether project activities involve material water use or pose risks to water availability or quality within the project area. Where material water use or risk is identified, project developers must implement measures to ensure efficient water use and protect local water quality (e.g. measures to prevent runoff, proper treatment and management, adoption of water-efficient practices).
Projects with material water use or water-related risks must establish a baseline for water use and/or water quality and must monitor relevant parameters over the crediting period.
Soil and Land Protection
Projects must manage land use and soil resources in a manner that prevents or minimizes soil degradation.
Project developers must assess whether project activities involve land use change, soil disturbance, or other activities that could pose material risks to soil quality or land stability within the project area. Where material risks are identified, project developers must implement measures to protect soil health and maintain land stability over the project lifecycle.
Projects involving material soil or land-use impacts must establish baseline conditions for soil quality and/or land stability and must monitor relevant parameters over the crediting period, at a level proportional to the scale and risk of the project.
Pollution and Waste Management
Project developers must assess potential sources of pollution and waste arising from project activities, including but not limited to:
Air emissions and fugitive emissions;
Liquid effluents and polluting water discharges;
Solid and hazardous waste generation;
Use, storage, and disposal of hazardous materials, pesticides, and fertilizers;
Noise and vibration impacts affecting workers or surrounding communities.
Where material pollution or waste risks are identified, project developers must implement concrete control measures to prevent pollution where feasible and minimize residual impacts.
Biodiversity Conservation
Avoidance of Biodiversity Harm
Project developers must identify any potential impacts to biodiversity in their environmental risk assessment. If material impacts to biodiversity are noted, project developers must conduct biodiversity baseline assessments in order to monitor potential impacts on marine and terrestrial ecosystems.
This includes assessing and monitoring number of species (flora and fauna) within project boundaries.
Project developers must note any species categorized as IUCN threatened and endangered species that might be impacted by their operations avoid harm to these species.
If it's not feasible to avoid adverse impacts to biodiversity, project developers must describe how they plan to minimize and monitor them.
Habitat and Ecosystem Protection
Projects must not convert high conservation value habitats (such as natural forests, grasslands, wetlands).
As part of the environmental risk assessment, project developers must assess how project activities interact with habitats and ecosystems. Project developers must describe if their activities have an impact on vulnerable species, critical habits, or habitat corridors and explain how they plan to minimize adverse effects or contribute to their protection.
Positive Biodiversity Impacts
Project developers must describe how their project contributes positively to biodiversity— including ecosystem services and soil health.
Project developers must prioritize the protection of habitats of rare, threatened, and endangered species. Projects must contribute to habitat connectivity where possible.
Any benefits or negative impacts identified to biodiversity must be monitored as the project continues in order to ensure impacts are managed and accounting for any changes that might occur during project duration.
Beyond "Do No Harm" and Creating Co-Benefits
The principle of "do no harm" can evolve into "create co-benefits" or initiatives that go beyond harm prevention to deliver added value to biodiversity and communities.
Project developers are expected to identify, implement, and document activities that go beyond harm prevention to deliver meaningful additional value for ecosystems and local communities, where relevant and feasible.
Co-benefits may include, but are not limited to:
Enhancement of ecosystem services and biodiversity, such as improved soil health, habitat restoration, water regulation, or reduced pressure on natural resources;
Local socio-economic benefits, including the creation of decent local employment, support for local supply chains, or improved access to resources, services, or infrastructure;
Equitable benefit-sharing mechanisms, including transparent arrangements to ensure that project benefits are fairly distributed among affected stakeholders and communities.
Alignment to Sustainable Development Goals
Sustainable Development Goals (or SDGs), established by the UN Development Program, provide a framework for addressing humanity's most pressing issues. With 17 goals spanning themes like the biosphere, society, and economy, SDGs encourage organizations to contribute meaningfully to global progress.
Measuring Impact on SDGs
There are different ways of assessing how a project aligns with these goals. All project developers are required to demonstrate how their mitigation activities align with relevant Sustainable Development Goals (SDGs), including but not limited to SDG 13 (Climate Action), in a manner that is context-specific, evidence-based, and subject to review.
Project developers must assess and describe how their project activities contribute to relevant SDGs beyond their core climate mitigation impact. Where relevant and feasible, this assessment must also demonstrate alignment with the sustainable development objectives and priorities of the host country.
Developers are not expected to claim alignment with all SDGs. Instead, they must identify and justify those SDGs and associated targets that are material to the project’s activities and operating context.
When identifying relevant SDGs, project developers must consider:
The sector of the project (e.g., agriculture, energy, waste, forestry)
The geographic, environmental, and social context in which the project operates
Host-country sustainable development priorities and how their project contributes to those
The primary activities and interventions implemented by the project
Project developers must reference the UN list of indicators to map how their project activities relate to the relevant SDGs. This requirement applies to all projects and forms part of the project proposal and validation process.
Project documentation must:
Specify the indicators, tools, or assessment methods (providing links if any external resources) used to assess and, where applicable, quantify SDG-related impacts
Clearly state whether impacts are assessed using quantitative, qualitative, or mixed-method approaches, with justification provided where quantitative assessment is not feasible
Ensure consistency between selected indicators and the claimed SDG outcomes
For each claimed SDG contribution, project developers must demonstrate a causal relationship between project activities and expected sustainable development outcomes. This causal alignment is assessed as part of the project proposal flow and is subject to third-party validation.
SDG impact mapping must:
Reference specific SDG targets and indicators, rather than SDGs at a high level
Explain how project activities are expected to lead to the stated SDG outcomes
Distinguish between:
Direct impacts (e.g., employment generation, improved access to services)
Indirect or enabling impacts (e.g., skills development, institutional capacity building)
Project developers must describe the nature and magnitude of expected SDG impacts, including:
The type of change the project is expected to produce
The populations or systems expected to benefit
Whether impacts are expected to be positive, neutral, or potentially negative
Where relevant, developers must identify trade-offs or risks associated with SDG outcomes, including any potential adverse impacts. Developers are required to describe mitigation measures, safeguards, or management practices implemented to address these risks.
Monitoring and Validation
Project developers are responsible for adhering to their risk management plans, which includes ensuring their impacts are effective, requiring robust monitoring of these risks, benefits, and alignment to goals. Project developers are required to provide a plan for monitoring ongoing environmental and social impacts in the validated project proposal flow.
If information comes to light signaling they have not adequately represented their environmental and social impact (either through grievances or OCP audit) projects will be penalized.
We are piloting a more formalized and mandatory non-carbon monitoring process in collaboration with RMI, with the goal to build a standardized SDG/co-benefit/safeguard monitoring tool that all project developers will use for all OCP projects. This tool will help project developers continuously monitor SDG alignment, risk management plans, and co-benefits and update any changes to the OCP team. With this tool, project developers will be required to:
Monitor SDG-related impacts in accordance with the indicators and methods specified at registration
Update SDG impact information as required during verification cycles
Ensure that claimed SDG outcomes remain consistent with observed project performance
Monitor how key activities impact identified environmental and social risks, specifying how the management plan has been effectively or ineffective. If original plans do not have the intended outcome, project developers must establish a new risk management plan prior to credit re-issuance.
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