About the Dedicated Grant Mechanism

Dedicated Grant Mechanism for Indigenous Peoples and Local Communities

An estimated 1.3 billion people—nearly 20 percent of the world’s population—rely on forests and forest products for their livelihoods. Forest-dependent indigenous peoples and local communities are among a forest’s most important stewards. Giving them an amplified voice is a powerful way to protect these ecosystems that play a critical role in mitigating the effects of climate change.

The Dedicated Grant Mechanism for Indigenous Peoples and Local Communities (DGM) is a global initiative that supports the full and effective participation of indigenous peoples and local communities in the international effort to reduce greenhouse gas emissions from deforestation and forest degradation and promote sustainable forest management and forest carbon stocks (REDD+). Established in 2010 as a special window under the Climate Investment Funds’ (CIF) Forest Investment Program (FIP) and implemented by the World Bank, the DGM places US$80 million directly in the hands of the people who simultaneously depend on and protect forests.

Consisting of 14 country projects and a global learning and knowledge exchange project, the DGM supports, shares, and elevates—to the national and global policy arena—sustainable forest-use practices led by indigenous peoples and local communities. It engenders collaboration with FIP investment planners in government, multilateral development banks (MDBs), and other stakeholders to enhance dialogue, build trust, and facilitate broader sustainable forest management efforts. The DGM is currently the world’s largest REDD+ initiative created solely for and by indigenous peoples and local communities.

More than the size of its funding, the DGM is truly unique in its design and governance led by indigenous peoples and local communities at every level. These groups are both leaders and beneficiaries of DGM activities, ensuring DGM support is demand-driven and attuned to local interests to affect change from the ground up.

14 country projects to support grassroots climate action

DGM country projects provide grants and technical support directly to grassroots organizations of indigenous peoples and local communities in target areas. In keeping with the goals of the FIP, funded interventions promote sustainable forest management, traditional livelihoods that contribute to adaptation and mitigation to climate change, and security of land tenure. In each country, a National Steering Committee, composed of self-selected representatives of indigenous peoples and local community groups, governs the DGM. It approves sub-projects and appoints a qualified local organization to serve as the National Executing Agency to manage national DGM activities.  

Global project to share lessons and exchange knowledge across borders

To expand impact and sustainability, the Global Learning and Knowledge Exchange Project supports coordination and shared learning across the country projects. The global project also provides trainings on policy and technical topics to regional representatives of indigenous peoples and local communities, strengthening their voice in climate forums. A Global Steering Committee, composed of members of National Steering Committees, governs the global program and provides overall intellectual and policy leadership to the DGM. In 2013 following a competitive process, it selected Conservation International as the Global Executing Agency to manage the global project and serve as the DGM global secretariat.

A new model for climate finance

Representatives of indigenous peoples and local communities direct all aspects of the DGM through the Global and National Steering Committees, and they are supported by executing agencies with an emphasis on accountability, transparency, and effectiveness. The FIP and World Bank have no part in decision making, but they do serve as observers to committee meetings, and the World Bank provides overall technical, fiduciary, and institutional oversight to the DGM at the global and country levels. Through its unique design, the DGM aims to establish recognition of indigenous peoples and local communities as effective leaders in efforts to reduce deforestation and forest degradation, whose continued participation in climate projects and policies is necessary for successful results.

Many of the DGM processes are new and unprecedented for the indigenous peoples and local communities and governments involved. Generating consensus among such a broad group of stakeholders on common design and governance arrangements has taken time, but it has been time well spent. While still in the early stages of implementation, the DGM offers important lessons on climate finance design and multi-stakeholder collaboration.

Further Information:

DGM Framework Operational Guidelines

DGM Organizational Chart

DGM FUNDING: $80.0 MILLION

  • Global Project
  • Brazil
  • Burkina Faso
  • *Congo
  • *Cote d'Ivoire
  • Democratic Republic of Congo
  • *Ecuador
  • Ghana

*Second group of countries approved

  • *Guatemala
  • Indonesia
  • Lao PDR
  • Mexico
  • *Mozambique
  • *Nepal
  • Peru