Between promise and practice: The role of carbon standards in community engagement in land-based offset projects in Indonesia and Madagascar

This working paper, authored by several Land Matrix members, raises concerns about the adverse impacts land-intensive, nature-based solutions - although central to the voluntary carbon market (VCM) - may have on vulnerable communities. This research examines the regulatory scope of leading carbon standards and their implementation in offset projects in Indonesia and Madagascar, focusing on community engagement. The authors find that dominant standards accommodate diverse business models but lack robust requirements for benefit-sharing, consultation, and consent. Consequently, local outcomes vary widely, often left to project developers’ discretion. In Indonesia, private-sector projects delivered community benefits ranging from substantial to negligible, with engagement frequently limited to minimal compliance. By contrast, a farmer-led project in Madagascar integrated benefit-sharing and participation as core elements, exceeding the basic standard requirements. These findings highlight the urgent need for stronger regulation that reflects the diversity of actors involved, with more comprehensive standards for all land-based VCM projects recommended to ensure meaningful community engagement and more equitable outcomes.

Authors: Christoph Kubitza, Grace Art, Jérémy Bourgoin, Quentin Grislain, Nikka Rivera, and Gabi Sonderegger
Published: 2025
Source: Lincoln Institute of Land Policy

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