Bolsa Común: The Heart of Community-Led Finance in the XiCO2e Durango Project
April 04, 2025
Project Updates
In the XiCO₂e Durango Forest Project, spanning over 284,000 hectares in Mexico’s Sierra Madre Occidental, a unique mechanism is setting a new standard for equitable benefit-sharing in nature-based climate initiatives. The Bolsa Común is more than just a community fund—it’s a transparent governance model that empowers local forest communities, ensures participatory decision-making, and channels carbon finance directly into long-term, locally-led development.
Developed through a strong alliance between FORLIANCE GmbH, AlaBoOl, and the participating Ejidos, the Bolsa Común demonstrates how carbon revenues can be reinvested in ways that promote inclusive forest management, community resilience, and sustainable land use.
Transparent Revenue Sharing
Central to the project is a transparent benefit-sharing model:
- 70% of carbon credit sales revenue is allocated directly to the participating Ejidos.
- 30% is retained by the XiCO₂e brand for operational sustainability.
From these shares, each party contributes 5% to the Bolsa Común community fund, dedicated to financing local development projects. This structure ensures that the majority of climate finance benefits those actively managing and preserving the forest ecosystems.
To visualize this, the following chart breaks down the revenue distribution model.
As shown, the model prioritizes the direct involvement and benefit of the Ejidos, while still ensuring long-term operational capacity for XiCO₂e and shared investment into the community fund.
Community-Driven Project Development
Between August and October 2024, a call for project ideas was extended to the 92 Ejidos of Pueblo Nuevo. The response was remarkable: 52 communities participated, with 998 individuals attending meetings—comprising 339 women and 659 men. This enthusiastic engagement led to the submission of 45 project proposals focusing on areas such as ecotourism, sustainable agriculture, and capacity building for youth and vulnerable groups.
The project follows a structured process for identifying and evaluating ideas. The diagram below illustrates the project idea management cycle:
Starting with the identification of project ideas and guided by a dedicated Selection Committee, the process ensures a fair and transparent evaluation. Proposals are reviewed based on a clear set of criteria, leading to informed decisions and effective implementation.
A Technical Committee—consisting of two Ejido representatives and three members from the FORLIANCE and AlaBoOl consortium—evaluated the submitted ideas using a comprehensive selection matrix. This ensured that each project aligned with community needs, financial feasibility, market potential, and sustainability. By December 2024, 15 projects were approved, involving 150 community members.
This committee ensures equal representation, with Ejido authorities, XiCO₂e, and implementing partners jointly managing project selection and oversight—reinforcing the principle of participatory governance.
Diverse and Impactful Initiatives
The approved projects encompass a range of initiatives aimed at enhancing food security and economic resilience:
- Poultry Farming: Three projects focusing on egg and broiler chicken production
- Pig Farming: Three initiatives dedicated to high-quality pork production
- Crop Cultivation: Six projects aimed at diverse crop production
- Fruit Cultivation: One project focusing on establishing orchards for fruit production
These ventures not only aim to boost local economies but also promote sustainable land-use practices, contributing to the overall well-being of the communities.
Capacity Building and Implementation
The next phase of the project emphasizes capacity building and effective implementation. Field visits are scheduled to reassess and refine project concepts, ensuring alignment with community goals and environmental standards. Agricultural specialists will provide hands-on support, and training workshops will equip community members with the necessary skills for successful project execution.
The Bolsa Común governance structure also focuses on establishing clear indicators for monitoring project success. Transparency in decision-making and financial management is paramount, fostering trust and ensuring that the benefits are equitably distributed.
A Scalable Model for Community Empowerment
The XiCO₂e Durango Forest Project shows what’s possible when climate finance is grounded in trust, transparency, and local leadership. By putting communities at the center of decision-making and investing in their priorities, the Bolsa Común offers a powerful blueprint for other regions aiming to merge climate action with social equity.
At FORLIANCE, we are proud to support this model—because safeguarding forests means investing in the people who care for them.
