IUCN's WALD Innovation Facility launches six flagship carbon projects that advance biodiversity benefits and community livelihoods

The Innovation Facility awards grants of up to €1.5 million per project. Following the global call for concepts, the Facility received almost 200 applications. Through a rigorous process, the most promising 6 projects were selected to receive grant funding. The Facility addresses a critical financing nature gap by providing early-stage “ramp-up” finance that de-risks and strengthens carbon projects with strong biodiversity and community benefits, ultimately positioning them for private investment. 

With the technical expertise for carbon, biodiversity and social, the Innovation Facility ensures that its grantees deliver high-integrity carbon projects that go beyond carbon standards requirements. Transparency and accountability are rigorously applied to ensure meaningful engagement of local communities and equitable sharing of project benefits. Building on IUCN's global standards, frameworks and tools, all funded projects prioritise the use of native species in their restoration activities, some of which the conservation status and extinction risk on the IUCN Red List are Critically Endangered (CR), Endangered (EN) or Vulnerable (VU).

The Facility raises the bar for its carbon projects by ensuring a unique approach of integrating innovative approaches that achieve biodiversity, climate mitigation, livelihood outcomes, together with strong environmental and social safeguards. The result will be ambitious, science-based, inclusive, and ready-to-deliver measurable impacts to operationalise global climate and biodiversity goals. Finally, the Facility supports the mainstreaming of nature into policies, corporate strategies and regulatory frameworks, ensuring that biodiversity conservation is placed at the core of high-level discussions on carbon markets such as those leading to COP 30. This is critical for encouraging the transition to nature-positive economies and contributing directly to the objectives of the Paris Agreement and the Kunming-Montreal Global Biodiversity Framework.

The launch of these six flagship projects marks a pivotal step in scaling nature-based initiatives that deliver measurable improvements for climate, biodiversity, and livelihoods. By bridging the gap between innovation and market readiness, the WALD Innovation Facility is setting new benchmarks for integrity, inclusivity, and effectiveness in international carbon markets. 

With strong technical capacity, rigorous environmental and social safeguards, and a commitment to global climate and biodiversity goals, the Facility is at the forefront to demonstrate that well-designed nature-based carbon projects can protect ecosystems, empower communities, and mobilise sustainable finance at scale.

Below is a brief summary of the six flagship projects:

Pahang Peatland Restoration Project (Pahang state, Malaysia)

The project will generate carbon credits through the restoration of peatland ecosystems that have been degraded by frequent fires and unstainable use. By reversing deforestation and rewetting peatlands the project will not only mitigate climate change but also enhance ecosystem resilience safeguard endangered species and increase resilience of local 
communities. 

Coffee Agroforestry for Carbon, Ecosystems and Livelihoods (Minas Gerais, Brazil)

1,000 smallholder coffee farmers will be supported in adopting agroforestry systems, ensuring long-term carbon sequestration, biodiversity restoration and improved resilience of local communities. Expected benefits include stabilisation of microclimates, adoption of more sustainable agricultural practices and new revenue streams for farmers. 

Zanzibar Community Restoration Project (Islands of Pemba and Unguja, Tanzania)

The project aims to scale up mangrove and forest restoration across 3,500 hectares through community-led efforts that will guarantee sustainable livelihoods for women and indigenous communities, while protecting marine biodiversity. 

Batang Asai Forest Restoration Project (South Sumatra, Indonesia)

The project will protect species and remove GHG emissions by increasing vegetation cover and density of trees or other types of woody vegetation. Benefits for local communities will range from enhanced climate resilience to carbon revenue stream.

EAGLE Restoration Project (Quezon, Philippines)

The project will transform deforested areas into food and medicine forests, mitigating threats to watersheds and the community and empowering indigenous people communities on land use and management plan.

Empowering Coastal Communities through Seagrass Restoration and Fisheries Sustainability Project (Gulf of Gabès, Tunisia)

Marine ecosystem restoration and implementation of sustainable fishing practices to enhance the region’s resilience to climate change, improve the health of the local ecosystems, and provide sustainable livelihoods for coastal communities.