Presentation
The implementation of the Global Biodiversity Framework adopted in 2022 and the National Biodiversity Strategies and Action Plans that derive from it require substantial resources. Biodiversity credits are part of the innovative financial schemes that could be mobilized for this purpose. Their use has so far been mostly restricted to compliance mitigation schemes, but the development of a voluntary market is a concept that is being promoted by an increasing number of actors since 15. This Policy Brief explores the conditions necessary to the deployment of biodiversity credits, on the basis of the lessons learned from the REDD+ forest carbon market used within the framework of the Climate Convention.
Key Messages
- In order to ensure the consistency and adequacy of biodiversity credits with the needs of a country or jurisdiction, it is crucial to first analyze existing expenditures, needs, and the institutional context. The establishment of national biodiversity financing plan will allow the relevant jurisdiction to determine whether or not biodiversity credits can represent an interesting solution.
- As with carbon credits within the REDD+ framework, biodiversity credits can attract private investment in conservation and restoration projects. However, their success will depend on a robust framework to guarantee the quality of projects and reduce the risk of “leakage”, or transfer of negative impacts outside the project area. As REDD+ has shown, jurisdictional approaches offer better environmental integrity and attract more investment than isolated projects by reducing risks.
- Biodiversity credits should follow a similar logic, by elaborating a robust national framework for the market at a national or jurisdictional scale. This framework should not only regulate the conditions for supply, but also for demand, as well as the control and monitoring of credit quality, with clear certification standards and requirements in terms of ecological impact measurement, an independent and duly authorized audit process, and a national or jurisdictional biodiversity credit register.
- The deployment of biodiversity credits must imperatively guarantee the active participation of indigenous populations and local communities, and the protection of their rights. Inspired by the REDD+ Cancun safeguards, these credits must ensure the equitable sharing of benefits and guarantee these communities’ free and informed consent.
