A/HRC/54/31 with principles, standards and mechanisms to make their green investments sustainable by providing financial support to Indigenous Peoples to secure their tenure rights and forest guardianship.80 63. At the twenty-seventh Conference of the Parties to the United Nations Framework Convention on Climate Change, Indigenous Peoples themselves came forward with principles and guidelines for direct access funding for climate action, biodiversity conservation and fighting desertification for a sustainable planet. 81 This initiative calls for an independent Indigenous-led global green funding mechanism to support global coordination, solidarity, experience- and knowledge-sharing, and lobbying and advocacy work for Indigenous Peoples from the seven sociocultural regions. The Special Rapporteur believes that direct funding to Indigenous Peoples is critical to ensuring a just transition to a green economy that supports Indigenous Peoples’ self-determined climate and biodiversity actions. A. Obstacles to direct financing 64. Several factors have prevented the direct financing of Indigenous Peoples’ projects. Obstacles to financing must be understood in the context of the underlying structural racism and colonialism that continue to affect Indigenous Peoples but also, in some situations, in the context of the political and economic interests of States in maintaining Indigenous Peoples in the margins of power. Additionally, financial actors may consider that investing in projects led by Indigenous Peoples are high risk because they may perceive participatory and consent processes as onerous delays in the implementation of their projects, or because Indigenous Peoples may lack or be perceived to lack sufficient collateral or other revenue streams and the necessary capacity and experience with fund management and accounting. 82 Another important obstacle is the rigidity of funding practices (short-term projects, tight deadlines) and the fact that Indigenous world views and realities are rarely accommodated. 83 In remote communities, the lack of a State presence and infrastructure barriers also hamper access to international funding mechanisms. 84 65. The mandate has previously observed how national Governments may impose onerous reporting requirements on Indigenous Peoples who are seeking funding for management of their resources and sometimes involve non-Indigenous third parties in the management of the funding. Indigenous governance institutions applying for funds are expected to respond within relatively short time frames to government-issued notices; the onus is placed on them to carry out studies and develop evidence identifying and supporting their concerns.85 B. Inclusive grant-making 66. Funding practices and grant design need to be modified to enable Indigenous Peoples to access, manage and benefit from funds more easily and quickly. 86 Funding must be channelled in ways that are relevant and appropriate for Indigenous Peoples, funding engagements should as far as possible be led by Indigenous Peoples, be flexible, long-term, gender-inclusive, timely and accessible, and ensure accountability. Transformative changes need to occur in the practices and infrastructure of climate and conservation funders, 80 81 82 83 84 85 86 16 Amazon Watch, Respecting Indigenous Rights: an Actionable Due Diligence Toolkit for Institutional Investors (2023); Charapa Consult, Directing Funds to Rights; and Rights for Resources Initiative and Rainforest Foundation Norway, “Funding with purpose: a study to inform donor support for Indigenous and local community rights, climate, and conservation” (2022). See https://www.oneearth.org/indigenous-leaders-call-for-independent-funding-mechanism-tosupport-climate-and-biodiversity-action/. See submission by Canada. See submission by the Indigenous Peoples of Africa Co-ordinating Committee and Maliasili and Synchronicity Earth, “Greening the grassroots: rethinking African conservation funding” (July 2022). See submission by Canada. A/HRC/27/52/Add.2, para. 72. Fred Nelson and others, “Better climate funding means centering local and indigenous communities”, Stanford Social Innovation Review, 11 May 2023. GE.23-13366