Reports

Indigenous Peoples and Local Communities-Led Financing Mechanisms: Mapping of Existing Funds in Tropical Forest Countries

IMAGE CREDIT: TBC

Across tropical forest countries, Indigenous peoples and local communities have established funds rooted in their own organizations and governance systems. These mechanisms offer pathways for directing resources toward territorial stewardship and self-determined development. Yet limited documentation of how these funds operate and the challenges they face has made it harder for donors and policymakers to understand and support them.

Coauthored by Rainforest Foundation US (RFUS) and the Global Alliance of Territorial Communities (GATC), this report maps financing mechanisms led by Indigenous peoples and local communities across 26 tropical forest countries. It examines their financial and legal arrangements, governance structures, and grantmaking processes, identifying patterns and differences across Africa, Asia, and Latin America.

The analysis reveals a growing and diverse landscape. Many funds give community assemblies or representative organizations authority over priorities and resource allocation. Some operate as independent legal entities; others are hosted within Indigenous federations or partner organizations. These arrangements offer different routes to accessing and managing finance, with varying implications for autonomy and long-term sustainability. Most funds remain small, rely on recurring donor contributions, and would benefit from more reliable financing to plan ahead and sustain their work.

The findings offer practical lessons for donors and forest finance initiatives, including the Tropical Forests Forever Facility (TFFF), whose proposed allocation for Indigenous peoples and local communities helped motivate this research. Expanding direct access to finance means investing in existing funds in ways that respect their governance systems and community-defined priorities.

The report is available in the GATC’s Shandia library.

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