What are Biodiversity Credits?
- A biodiversity credit is a verifiable, quantifiable, and tradeable financial certificate rewarding positive biodiversity outcomes, such as the conservation or restoration of species, ecosystems, and natural habitats.
- They are gaining attention as a mechanism to finance biodiversity conservation and achieve the targets under the Kunming-Montreal Global Biodiversity Framework (KMGBF).
- The KMGBF, established during the 15th Conference of Parties (CoP15) of the Convention on Biological Diversity (CBD), aims to promote biodiversity conservation, sustainable use of natural resources, and equitable benefit-sharing.
- Key features: It represents a specific amount of land or marine habitat conserved or restored over a fixed period.
- Credits are generated by non-profits, governments, landowners, or companies and sold to private entities to fulfill biodiversity commitments.
- Examples of Biodiversity Credit Schemes: Terrasos, GreenCollar, ValueNature, CreditNature, Wilderlands.
- Market Overview:
- Current Market Value: Estimated at $8 million (World Economic Forum).
- Future Projections: Expected to grow to $2 billion by 2030 and $69 billion by 2050.
Biodiversity Credit Alliance (BCA):
- It is a voluntary international alliance supporting the implementation of the Kunming-Montreal Global Biodiversity Framework.
- Focuses on Targets 19(c) and 19(d) of the frameworks.
- Targets under KMGBF:
- Target 19(c): Businesses must monitor, assess, and disclose their biodiversity risks, dependencies, and impacts.
- Target 19(d): Businesses must provide consumers with information to encourage sustainable consumption patterns.
- Mission: To develop a biodiversity credit market with science-based principles to guide conservation efforts.
- Governance:
- Secretariat: Facilitated by UNDP and UNEP Finance Initiative (UNEP FI).
- BCA Task Force: Decision-making body comprising methodology developers, standard setters, academic institutions, and representatives from Indigenous Peoples and Local Communities (via the Communities Advisory Panel).
