Co-creating the design of equitable ecosystem restoration using the voluntary carbon market - six principles

Abstract

The voluntary carbon market (VCM) has emerged as a funding source for ecosystem restoration and climate action. Despite its potential, legitimate concerns about its effectiveness and fairness have been raised. Drawing on a case study from La Mosquitia, eastern Honduras, this paper examines how the co-creating the design of climate compensation initiatives can contribute to ecologically sensitive restoration and equitable development. Our findings suggest that the VCM can enable a meaningful co-creation of project design, including the project longevity required to attend to diverse interests and the flexibility needed for adaptive implementation. Growing out critically engaging with the La Mosquitia case study, we have identified six principles underpinning a well-designed restoration project. They include 1) treating carbon sequestration as a development vehicle, and not a goal; 2) adapting to context; 3) support negotiated decision making; 4) designing social infrastructures that foster learning and innovation; 5) diversifying income streams and; 6) focusing on transparency. By paying attention to these principles, we argue that the VCM can orchestrate the restoration of ecosystems in diverse habitats across the planet in the years to come. By reflecting on co-creation for ecosystem restoration and rural development, this paper thus contributes to ongoing conversations on how to design and implement compensation schemes that deliver on the intention of restoring ecosystems and supporting rural livelihoods.