Biodiversity Credits

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What are Biodiversity Credits?

Definition: 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.
Biodiversity Credits (Biocredits) 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)

Purpose: 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: 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).

Q1: What is the Green Credit Programme (GCP)?

The Green Credit Programme (GCP) is an initiative promoting environmental sustainability by incentivizing eco-friendly actions through tradable credits, encouraging industries, organizations, and individuals to adopt practices that support conservation, restoration, and sustainable resource management.

Source: DTE