Sustainability Language

Human Rights & Social Sustainability

Community benefit agreement

A legally binding contract between a developer and community representatives guaranteeing specific local benefits from a project.

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Definition

A community benefit agreement is a legally enforceable agreement between a project developer and a coalition of community groups committing the developer to defined local benefits — such as local hiring, affordable housing, environmental mitigation or community funds — in exchange for community support. Related instruments include host community agreements, good neighbour agreements and community benefits plans.

References

Overview

What it means

It converts consultation promises into enforceable obligations with named community signatories.

How it is used

Long used in urban real-estate development, CBAs now feature in clean-energy siting; the 2015 Vineyard Wind agreement is cited as the first for US offshore wind, with developers using benefit commitments to reduce opposition that stalled thousands of megawatts of projects.

Why it matters

CBAs are a leading practical tool for procedural and distributive justice in the energy transition.

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