The Fairtrade Premium is charged on top of the Minimum Price. Producer groups will use Premium generated by Fairtrade Carbon Credit projects to finance climate resilience and adaptation projects. If a producer group has come to Fairtrade solely through the Fairtrade Climate Standard, they will also be expected to invest the Premium in climate adaptation projects unless they can demonstrate that another type of local development project needs their investment more urgently.

You can read more about this on the Fairtrade International website: