The Role of Biodiversity Credits in Promoting Conservation Outcomes
How can we ensure that biodiversity credits truly contribute to meaningful and sustainable conservation outcomes?
Biodiversity credits are a market-based mechanism designed to incentivize the protection and restoration of natural environments. The Biodiversity Credit Alliance defines a biodiversity credit as “a certificate that represents a measured and evidence-based unit of positive biodiversity outcome that is durable and additional to what would have otherwise occurred.” By creating a financial value for biodiversity, these credits can align economic activities with conservation and restoration, and drive investment into projects that restore, enhance and safeguard biodiversity, which can provide support to local stewards.
TNC View: Biodiversity Credits
Read more about TNC's position on biodiversity credits.
DOWNLOAD THE DOCUMENTBiodiversity crediting mechanisms have long had a place within regulated mitigation compliance systems. And while the new attention to voluntary biodiversity credit markets represents a novel approach to conservation, there are challenges toward implementation. Nature is dynamic and multifaceted, so, accurately measuring and verifying biodiversity gains is complex.
Establishing globally standardized monitoring systems is essential but difficult, leading to concerns about the reliability and effectiveness of credits.
Ensuring that biodiversity credits truly contribute to meaningful and sustainable conservation outcomes requires ongoing refinement of methodologies, robust regulatory frameworks and transparent reporting practices.
Sufficient safeguards are required to ensure equitable benefits for Indigenous Peoples and local communities. And, there is real risk of greenwashing by companies that may purchase biodiversity credits to make claims of supporting nature without taking sufficient credible action to address negative impacts.
Nature Positive
Nature Positive is a societal goal that companies must contribute towards by:
Additionally, companies should contribute to the conservation and restoration of nature outside of value chains to support global nature goals.
Taking this into account, The Nature Conservancy’s (TNC) position on biodiversity credits reflects our dedication to preserving and restoring biodiversity while ensuring responsible private sector engagement.
Our Position
Use of Biodiversity Credits - Guidance and Safeguards
TNC encourages clear guidance on the use of biodiversity credits. If biodiversity credits are created through a regulated compensatory mitigation or offset program, a purchaser can make claims in relation to specific impacts. Otherwise, purchasers should claims related to “contributing to” or “supporting” societal biodiversity outcomes, when appropriate—rather than claiming outcomes related to purchaser-level biodiversity impacts. Safeguards are essential to prevent misuse and greenwashing. To do their part in ensuring a nature positive future, companies can support societal biodiversity targets, and must take action to address their own negative impacts across operations and value chains, which may involve substantial changes to business models.
In summary, TNC advocates for responsible development of biodiversity markets in the form of government-administered frameworks for offsetting biodiversity impacts and issuance of strategic biodiversity certificates for contributing to societal biodiversity targets. Biodiversity credits and certificates are only one piece of the puzzle of meeting the biodiversity financing gap. By working collaboratively and considering all levers needed to achieve the goals and targets of the GBF, we can halt and reverse biodiversity loss and protect our planet for generations to come.
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