The first of the World Bank’s new Dedicate Grant Mechanism (DGM) projects is an agroforestry initiative in the Cerrado region of Brazil.

An article on the World Bank’s website explains how the DGM has been designed to put forest-dependent communities, who are among the most marginalized in the world, in charge of design and funding decisions for projects that fight deforestation.

The grant program gives “indigenous peoples and local communities the power to set priorities and implement programs aimed at conserving their natural environment,” says the article.

In Brazil, $6.5 million has been approved under the DGM to finance an initiative based on native and adapted fruits, to help pay for processing units for agriculture and non-timber forest products, and also to help with production and commercialization of handicrafts. The Cerrado region, where the project will operate, consists of a massive expanse of wooded grasslands that makes up more than 20 per cent of Brazil.

It is expected that the project will enhance leadership and negotiation skills to give indigenous people and local community members the opportunity to actively participate in initiatives related to natural resource-based mitigation and climate change adaptation.

“This global mechanism fully recognizes the vital role communities play in the stewardship of forests and is the first to ensure that indigenous people and forest-dependent communities will design, implement and govern the program according to their own priorities,” said Rachel Kyte, World Bank Group Vice President and Special Envoy for Climate Change.

Read the full story: Innovative Grant Program Helps Communities Fight Forest Loss

Find out more about the Dedicated Grant Mechanism (DGM)