1799 2. EXISTING TYPOLOGIES The following section presents a detailed mapping outlined in FIGURE 1. It is worth noting that discussions on the use of revenues from natural resources are based precisely on three pillars: (i) intergenerational wealth transfer, ensuring that future generations are not deprived of essential assets (KOTLIKOFF; SUMMERS, 1981); (ii) civil society participation and decentralized governance for the achievement of collective rights (Ostrom, 2008); and (iii) strengthening Clean Development Mechanisms (CDMs) – created under the Kyoto Protocol27 – which promote clean technologies, mitigate climate change, and stimulate the local economy through sovereign funds, endowment funds, environmental compensation, TACs, and climate funds that operate in parallel, although they share objectives such as intergenerational wealth transfer, productive diversification, and addressing the climate agenda. This section highlights the central challenge: fragmentation among different structural models. 2.1. Mapping a. Private Voluntary Structures Organized as Endowment Funds from Natural Resource Revenues These are off-budget funds, trusts, or foundations primarily established by large corporations to support initiatives near natural resource extraction projects. The funds are managed under perpetuity rules, preserving or expanding the principal, separate from operational assets28, with distinct accounting or legal personality. Common to these private funds is the goal of preserving the principal, using only income to fulfill their mission. They can be classified into two main modalities: a.1.) Endowment, Trustee, and Foundation Funds (FTFs): Structured and managed by large corporations with operations in multiple countries, such as the Mozal Community Development29 Trust in Mozambique, Asociación Ancash30, in Peru, and the Palabora Foundation31, in South Africa, Alcoa Foundation32 in the USA, or with specific focuses like the International Seabed Authority,33 Endowment Fund. a.2.) District Funds (DFs): Local institutions established in regions with major natural resource projects, aimed at socio-economic development of affected communities. DFs are generally managed in collaboration with civil society, funded with legally required contributions from mining companies, and finance projects to: (i) improve health, education, and the environment; (ii) increase access to water, sanitation, and energy; and (iii) develop infrastructure, irrigation systems, and watersheds, among others. Examples also include educational endowments at North American and British universities, health funds, 27 One of the mechanisms proposed by the Kyoto Protocol was the Clean Development Mechanism (CDM), which allows developed countries to finance greenhouse gas (GHG) reduction projects in developing countries in exchange for Certified Emission Reductions (CERs), which can be used to meet their GHG reduction targets. 28 In Anglo-Saxon countries, particularly the USA and the United Kingdom, three types of endowments are classified: true endowments (or permanent endowments, intended to generate income for non-profit organizations, where the principal cannot be used and only a portion of the income generated can be made available to the institution to which it is linked); quasi-endowments (or expendable endowments), which have no restrictions on the use of the principal, and it can be used with authorization from the fund’s governing bodies; and term endowments, in which the entire principal must be used within a predetermined period, as these funds are not intended to be perpetual. (MIREE, 2014). 29 https://www.south32.net/what-we-do/our-locations/southern-africa/mozal-aluminium 30 https://www.instagram.com/asociacionancashperunj/ 31 https://pafound.org/ 32 https://www.alcoa.com/foundation/en 33 https://www.isa.org.jm/capacity-development-training-and-technical-assistance/endowment-fund-2/
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