Building a Thriving Biodiversity Credit Market
Interest and investment in the future of biodiversity credit markets has grown enormously in the last few years, with the very promising potential of these markets often obscured by parallel debates about carbon credits, or confusion about how these markets might work. Fortunately, experience in developing and operating biodiversity credit markets is readily available - we already have excellent models in a number of countries, with decades of experience. Lessons learned and best practices from these existing biodiversity credit markets should be a guide for how biodiversity credits can be created and used to compensate for environmental impact, and why they are a compelling option for corporate buyers who seek to invest in nature. This document shares this wealth of experience and know-how.
Instead of seeing biodiversity markets as simply another version of the carbon market, we know that the tools already exist to turn investment in biodiversity uplift into real gains for nature, with well-functioning, high integrity markets. With these approaches, we can ensure that the benefit for nature is maximized, while risks are minimized for buyers, sellers, and landowners alike, including Indigenous Peoples and local communities. A community of practice that learns from these established principles can create stories of success for nature and people, and a product that responds to growing demand for biodiversity. Corporate buyers are building on their efforts to quantify and disclose nature impacts, and will be in a much better position to avoid and minimize these impacts through the mitigation hierarchy. And their residual impact - measured and known - calls for biodiversity credits that can adequately compensate for the damage. Whether through regulatory offset markets or the voluntary purchase of credits, high integrity biodiversity credits can turn both global biodiversity goals and corporate “nature positive” commitments into tangible, evidence based, and equitable biodiversity gains.
You can also read a 3-page synthesis of biodiversity credit principles.
