Developing an Incentives and Benefits (I&B) Mechanism

•From the outset of HCSA implementation with smallholders, incentives and benefits were identified by the SH and HCSA as critical if HCSA adopted, and forests protected.
•Study carried out by University of Indonesia Center for Climate and Sustainable Finance Dept (CCSF – UI) and SPKS in 2022, based around a draft concept note and including field data gathering and layer analysis.
•Recommendations of the study are now being implemented, including establishing a mechanism, rolling out implementation of I&B to participating communities, and identifying support partners including in the supply chain.
•See below for a schematics of I&B Mechanism being established.



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