To respond to the climate crisis with the urgency it deserves, nations must swiftly transition to low-carbon energy systems. The deployment of wind and solar energy is pivotal to climate mitigation efforts and is facilitating the transition from conventional fossil fuel-based energy systems to those that are cleaner, renewable, and more sustainable – when they are rights-respecting.

Poorly designed renewable energy projects are already harming livelihoods and violating land and human rights, especially for Indigenous Peoples and other frontline communities who are already disproportionately affected by climate change and land-intensive developments. The Business and Human Rights Centre (BHRC) has documented abuses linked to wind and solar projects, including inadequate community engagement, lack of respect for the right of Indigenous Peoples to Free, Prior and Informed Consent and public participation, which undermines public trust and fuels resistance. When human rights are not central to project development, communities understandably resist, leading to social conflict, delays in renewable deployment, and increased litigation. But renewable energy operations present opportunities to pursue both positive and sustainable outcomes for communities and natural systems.

Our work on shared prosperity in renewables aims to help Indigenous Peoples and local communities articulate their own visions of shared prosperity and climate justice, highlight concerns about harms, and feed these perspectives into wider national and global debates on rights-respecting benefit sharing in the renewable energy sector, as a potential alternative to extractive models that perpetuate existing inequalities.

BHRC’s approach to benefit-sharing business models looks at ensuring that renewable energy projects are developed through meaningful engagement with affected communities and ongoing FPIC of Indigenous Peoples, and that the rights of communities to directly benefit from resource development (with a focus on, but not limited to, financial benefits), participate in decision-making, and set their own development priorities are fully respected.

➡️ On this portal, we will specifically explore projects and cases exploring benefit sharing and community ownership models in the renewable energy sector.

➡️ Discussions on community-led solutions often focus on small, decentralised projects. However, both small-scale and utility-scale renewable projects are necessary to address the climate crisis at scale. Utility-scale projects like large solar and wind farms feed significant amounts of electricity into the national grid, while smaller rooftop and off-grid systems generally do not. In its own work and with partners, BHRC will aim to heed lessons from small-scale projects, but will prioritise engagement with utility-scale developments and the companies behind them.

This portal builds on the foundation of Shared prosperity models and Indigenous Peoples' leadership for a just transition, co-developed by Indigenous Peoples Rights International and the Business and Human Rights Centre. This page focuses on local communities more broadly while maintaining the same rights-based approach.

For information, tools, and good practices centred on Indigenous Peoples’ rights and shared prosperity models, head to our dedicated hub ➡️

Invitation for input:

We invite communities, and civil society organisations to share examples and case studies of benefit sharing that they are directly involved in or supporting for inclusion in our growing database via the online form. We welcome updates or additional information on cases that are already listed, but with limited information.

A rights-based approach

This requires renewable energy companies and developers to not only engage rightsholders, but also adopt rights-based, partnership-driven approaches grounded in three key principles: shared prosperity, corporate human rights due diligence, and fair negotiations. This must mean that:

Core values of justice and the human rights of all rightsholders (members of frontline communities, Indigenous Peoples - individually and collectively) are non-negotiable in project design and implementation, which requires meaningful consultation and deliberation with rightsholders. Respect for the right to self-determination and to give or withhold their free, prior and informed consent (FPIC) of Indigenous Peoples is a fundamental precondition, and respecting the values and aspirations of all communities is essential. Consent of Indigenous Peoples in such projects should be ongoing, with express opportunities and mutually agreed requirements for review and renewal.
Rightsholders benefit from resource development, participate in decision-making, and determine their priorities in project planning processes and decisions that directly or indirectly affect them and their territories – building shared prosperity in a way that is inclusive and diverse, and leads to benefits not primarily for the private sector but also for rights holders.

"Fairly and equitably sharing the benefits of a just energy transition, as a requirement of the human right to science, Indigenous Peoples’ human rights and peasants’ human rights, entails moving away from a mere logic of exchange and “damage control”. Instead, it requires collaboratively identifying and understanding opportunities for positive impacts, both locally and globally, according to Indigenous peoples’, communities’ and women’s world views. […] States should therefore: […] Prevent misuse of benefit-sharing, such as when an economic advantage is offered in exchange for obtaining consent, when social cohesion of affected communities is undermined through bribes or selective negotiations tactics or when paternalistic mechanisms are not responsive to communities’ need; […] Support, in the first instance, community ownership or co-ownership and, where communities chose to engage with a business entity, require both community participation in decision-making and a share in profits and other benefits […]" – Report of the Special Rapporteur on Human Rights and Climate Change, Elisa Morgera, “A human rights-based approach to the energy transition”, 26 August 2025

Key concepts and definitions

There is no one-size-fits-all benefit sharing model; different ownership sharing or co-benefit models must be explored. Options and modalities may include (but are not limited to): revenue sharing (where a portion of the project’s revenues are transferred to local communities, directly or through trusts), community development initiatives (skills, employment, and livelihoods development), energy access agreements, adjusted electricity pricing and subsidised rates, co-ownership or full ownership through equity stake in the projects, and alternative options as presented by communities.

See key definitions of terms we’ll use in our research here.

What is the role of states?

Benefit sharing models can only succeed when states play a key role in creating the right set of enabling conditions for them to not only respond to the needs of communities, but also ensure that negotiations are conducted in a fair manner – addressing power asymmetries between communities and companies, and that communities are able to access financial, technical and legal support. With regards to Indigenous Peoples, a pre-condition for just and equitable benefit sharing is that they are formally recognised as Indigenous Peoples and that their rights are recognised, respected and protected.

A few countries – mainly in the Global North – are leading the way and have mandated policies on benefit sharing and/or community ownership models:

Australia – Queensland mandates benefit sharing; Victoria and South Australia have national community benefit policies.
Denmark – Developers must pay into community benefit funds for local projects.
Germany – Voluntary payments exist; however the EU’s focus on benefit sharing may drive future regulation.
United Kingdom – The UK has consulted on making community benefits and shared ownership mandatory, potentially replacing existing voluntary guidance in Scotland.
Canada – No national mandate, but national and provincial programmes promote benefit sharing, especially with Indigenous Peoples communities.
USA (some cities/counties) – Places like Detroit require community benefit agreements; some California projects need legally binding agreements.

While fewer examples exist in the Global South, the momentum to explore fairer and more equitable solutions that respect and amplify the voices of rightsholders is building. South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REI4P), for example, continues to pioneer a model of community ownership, with community trusts holding a minimum percentage of shares in large-scale renewable projects.

Why should companies be involved?

Renewable energy companies are central in shaping a just and inclusive energy transition that does not further perpetuate inequality, ensuring the delivery of rights-respecting outcomes across the sector, transforming renewable energy development from extractive models to partnership-based models.

We see shared prosperity as…being able to leverage the opportunity for sharing positive benefits for the value created locally but also the value it creates for accelerating the transition. If done well, it is not a cost added to the green electron, but an element required to ensure deliverability.

Adele Tharani, Social Sustainability Manager, Ørsted

While cases of shared prosperity and benefit-sharing initiatives are increasing, their impact and scale remain limited, especially in the Global South. This presents an opportunity for companies and developers in these countries – supported by strong national policies and regulatory frameworks, to drive real transformation, learning, and building from existing successes and learnings. This portal highlights the important values and principles of shared prosperity through benefit-sharing in renewable energy showcasing as well as propositions to further strengthen and/or advance opportunities for and with local communities in the renewable energy sector. The aim is to move from ad hoc or CSR-style initiatives to making rights-respecting benefit sharing a mandated standard practice, with BHRC encouraging developers, investors and policymakers to adopt aligned policies across the sector.

Our 2025 Renewable Energy and Human Rights Benchmark shows that a few companies are already leading the way and increasing their focus on business models that promote shared prosperity.

Communities getting the ownership of their local jobs, land and socioeconomic growth is so important. It is our responsibility as a sector to support them in this.

Lindsay Dougan, Senior Community Investment Manager, SSE