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Lh-fund As Redd+ Funding Instrument: Important Considerations To Make It A Fair And Inclusive Funding Instrument
The Environment Fund Management Agency (LH-Fund) for REDD+ financing is challenged by issues regarding compliance with social and environmental safeguards, the lack of a multi-stakeholder structure to ensure representation of civil society and indigenous/local communities, and the complexity of funding access. To ensure the LH-Fund is fair and inclusive, key ministers (Coordinating Minister for Economic Affairs, Minister of Environment and Forestry, and Minister of Finance) must clarify safeguards institutional settings, institutionalize the participation of civil society and indigenous/local communities, and prioritize the acceleration of social forestry and recognition of indigenous territories. The Norwegian government should also ensure consistency with the Letter of Intent regarding safeguards implementation and representation in the governing structure.123
Indigenous people and local communities have limited access to REDD+ funding as direct implementers through the LH-Fund due to the slow realization of Social Forestry and the regulatory focus on legal-formal rights (permits) for implementers. Communities without legal rights are often ineligible to become direct implementers. Given that accelerating Social Forestry can contribute significantly (34.6%) to the national climate commitment by preventing deforestation in high-risk areas, the LH-Fund must prioritize this program. Direct community access can be facilitated by funding REDD+ supporting activities, such as land tenure clarification and resolution of tenurial conflicts





















