Enhancing Participation and Access to Finance for Indigenous Peoples and Local Communities

SLYCAN Trust
June 20, 2025

On June 12th, 2025, key actors in the UNFCCC process came together for a dinner dialogue hosted by SLYCAN Trust in Bonn, Germany, in the lead-up to the June Climate Meetings (SB62). The dialogue provided a forum for discussion and exchange on participation and access to finance for Indigenous Peoples and for local communities, taking advantage of the meetings of both the Standing Committee on Finance (SCF) and the Facilitative Working Group (FWG) of the Local Communities and Indigenous Peoples Platform (LCIPP) during this week.

With the attendance of SCF members, FWG members, representatives of the Indigenous Peoples Organizations (IPO) observer constituency, the COP30 incoming Presidency, and key negotiators, the dialogue saw a highly productive discussion towards an enhanced understanding of access to finance, participation, and inclusive processes, as well as actionable policy recommendations and solution pathways.

Participation and access to finance

Access to finance is increasingly discussed in multilateral forums, including in the UNFCCC process, under the Convention on Biological Diversity (CBD) and in the agreement related to Biodiversity Beyond National Jurisdiction (BBNJ) under the Convention on the Law of the Sea. However, Indigenous Peoples still face systemic barriers for accessing finance, including stringent application procedures and limited institutional capacities. There is a pressing need to explore ways to strengthen their participation in governance and improve access to funding and other means of implementation. Despite the recognition of Indigenous Peoples as key rights holders, only a minimal share of Official Development Assistance (ODA) at present reaches them. For instance, a study by Rainforest Foundation Norway indicated that tenure and forest management in tropical countries from Indigenous Peoples and local communities received the equivalent of less than 1% of ODA for climate change mitigation and adaptation over a period of ten years (2011-2020), pointing to acute access challenges.

Similarly, effective and inclusive social dialogue is essential to addressing global challenges equitably. Indigenous Peoples are firmly established in multilateral processes as rights holders and as such need to be meaningfully engaged in shaping solutions. The design of these solutions must be informed by the best available science and build upon Indigenous knowledge and local knowledge systems, accessed through free, prior, and informed consent, and active participation.

Barriers highlighted by representatives of Indigenous Peoples and of local communities at international fora include the need to rely on intermediaries for accessing support, which often risks misalignment with their priorities and needs; language barriers hindering effective communication, and capacity constraints emanating from stringent application processes.

Areas of discussion and key takeaways

Through plenary and group discussions, participants explored several key questions: How can multilateral processes enhance participation and inclusivity of Indigenous Peoples and local communities? What are the challenges for Indigenous Peoples and for local communities to access funding from multilateral funds and what can be done to address these? What existing mechanisms are in place and what processes are ongoing in this regard? And what are good practices and approaches, case studies for implementation, and learnings from existing processes?

Representatives from Parties and the observer constituency explored these questions in an interactive and productive format. Some of the key takeaways from this discussion included:

  • While the integration of Indigenous Peoples’ voices into relevant processes has been slow, significant progress has been achieved. Ensuring inclusivity in Party delegations could provide a significant opportunity to further enhance the representation of Indigenous Peoples and local communities in decision-making processes, whose perspectives highlight collectivism, stewardship, and placing nature at the centre of deliberations.
  • Barriers for grassroots organizations’ access to finance persist due to bureaucratic and legal processes involved. Disaggregating data on Indigenous Peoples and on local community access could help to enhance understanding of how they benefit from available support and gaps, and contribute to relevant processes such as the NCQG.
  • There is a need to bridge the disconnect between the multilateral and the local levels. Establishing trust between funders and recipients is key. Successful examples of partnerships and emerging good practices exist, such as the Climate Relocation of Communities (CROC) Trust Fund in Fiji, the Amazon Fund in Brazil, and the Tropical Forest Forever Facility (TFFF).
  • Fostering and building the capacity of representatives from indigenous groups is necessary to support their active engagement in multilateral processes. Good practices exist in the inclusion of indigenous groups and local communities in decision-making, notably under the CBD. The FWG under the UNFCCC process provides another positive example.

The way forward

Climate finance that is inclusive and that benefits Indigenous Peoples and local communities is urgently needed. To increase Indigenous Peoples’ access to climate finance, processes must address both structural and procedural barriers that have limited their ability to directly benefit from climate funding streams, despite their proven contributions to climate mitigation, adaptation, and resilience.

This dinner dialogue ahead of the UNFCCC June Climate Meetings provided an opportunity for key actors on finance, Indigenous Peoples, and local communities to exchange views, experiences, and lessons learned related to participation and access to finance, highlighting challenges faced at the multilateral level as well as existing good practices and initiatives from countries across the world.

SLYCAN Trust

SLYCAN Trust is a non-profit think tank. It has been a registered legal entity in the form of a trust since 2016, and a guarantee limited company since 2019. The entities focus on the thematic areas of climate change, adaptation and resilience, sustainable development, environmental conservation and restoration, social justice, and animal welfare. SLYCAN Trust’s activities include legal and policy research, education and awareness creation, capacity building and training, and implementation of ground level action. SLYCAN Trust aims to facilitate and contribute to multi-stakeholder driven, inclusive and participatory actions for a sustainable and resilient future for all.

On June 12th, 2025, key actors in the UNFCCC process came together for a dinner dialogue hosted by SLYCAN Trust in Bonn, Germany, in the lead-up to the June Climate Meetings (SB62). The dialogue provided a forum for discussion and exchange on participation and access to finance for Indigenous Peoples and for local communities, taking advantage of the meetings of both the Standing Committee on Finance (SCF) and the Facilitative Working Group (FWG) of the Local Communities and Indigenous Peoples Platform (LCIPP) during this week.

With the attendance of SCF members, FWG members, representatives of the Indigenous Peoples Organizations (IPO) observer constituency, the COP30 incoming Presidency, and key negotiators, the dialogue saw a highly productive discussion towards an enhanced understanding of access to finance, participation, and inclusive processes, as well as actionable policy recommendations and solution pathways.

Participation and access to finance

Access to finance is increasingly discussed in multilateral forums, including in the UNFCCC process, under the Convention on Biological Diversity (CBD) and in the agreement related to Biodiversity Beyond National Jurisdiction (BBNJ) under the Convention on the Law of the Sea. However, Indigenous Peoples still face systemic barriers for accessing finance, including stringent application procedures and limited institutional capacities. There is a pressing need to explore ways to strengthen their participation in governance and improve access to funding and other means of implementation. Despite the recognition of Indigenous Peoples as key rights holders, only a minimal share of Official Development Assistance (ODA) at present reaches them. For instance, a study by Rainforest Foundation Norway indicated that tenure and forest management in tropical countries from Indigenous Peoples and local communities received the equivalent of less than 1% of ODA for climate change mitigation and adaptation over a period of ten years (2011-2020), pointing to acute access challenges.

Similarly, effective and inclusive social dialogue is essential to addressing global challenges equitably. Indigenous Peoples are firmly established in multilateral processes as rights holders and as such need to be meaningfully engaged in shaping solutions. The design of these solutions must be informed by the best available science and build upon Indigenous knowledge and local knowledge systems, accessed through free, prior, and informed consent, and active participation.

Barriers highlighted by representatives of Indigenous Peoples and of local communities at international fora include the need to rely on intermediaries for accessing support, which often risks misalignment with their priorities and needs; language barriers hindering effective communication, and capacity constraints emanating from stringent application processes.

Areas of discussion and key takeaways

Through plenary and group discussions, participants explored several key questions: How can multilateral processes enhance participation and inclusivity of Indigenous Peoples and local communities? What are the challenges for Indigenous Peoples and for local communities to access funding from multilateral funds and what can be done to address these? What existing mechanisms are in place and what processes are ongoing in this regard? And what are good practices and approaches, case studies for implementation, and learnings from existing processes?

Representatives from Parties and the observer constituency explored these questions in an interactive and productive format. Some of the key takeaways from this discussion included:

  • While the integration of Indigenous Peoples’ voices into relevant processes has been slow, significant progress has been achieved. Ensuring inclusivity in Party delegations could provide a significant opportunity to further enhance the representation of Indigenous Peoples and local communities in decision-making processes, whose perspectives highlight collectivism, stewardship, and placing nature at the centre of deliberations.
  • Barriers for grassroots organizations’ access to finance persist due to bureaucratic and legal processes involved. Disaggregating data on Indigenous Peoples and on local community access could help to enhance understanding of how they benefit from available support and gaps, and contribute to relevant processes such as the NCQG.
  • There is a need to bridge the disconnect between the multilateral and the local levels. Establishing trust between funders and recipients is key. Successful examples of partnerships and emerging good practices exist, such as the Climate Relocation of Communities (CROC) Trust Fund in Fiji, the Amazon Fund in Brazil, and the Tropical Forest Forever Facility (TFFF).
  • Fostering and building the capacity of representatives from indigenous groups is necessary to support their active engagement in multilateral processes. Good practices exist in the inclusion of indigenous groups and local communities in decision-making, notably under the CBD. The FWG under the UNFCCC process provides another positive example.

The way forward

Climate finance that is inclusive and that benefits Indigenous Peoples and local communities is urgently needed. To increase Indigenous Peoples’ access to climate finance, processes must address both structural and procedural barriers that have limited their ability to directly benefit from climate funding streams, despite their proven contributions to climate mitigation, adaptation, and resilience.

This dinner dialogue ahead of the UNFCCC June Climate Meetings provided an opportunity for key actors on finance, Indigenous Peoples, and local communities to exchange views, experiences, and lessons learned related to participation and access to finance, highlighting challenges faced at the multilateral level as well as existing good practices and initiatives from countries across the world.

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