BIODIVERSITY

In the midst of an unprecedented biodiversity loss crisis, a new instrument is gaining attention around the world – the Biodiversity Credit. Just as carbon credits have become a popular way to mitigate the impacts of climate change, biodiversity credits offer an innovative way to financially support efforts to conserve and restore our planet’s ecosystems.

A report published by the Biodiversity Credit Alliance (2024) defines biodiversity credits as certificates that represent units of measurable, evidence-based positive biodiversity intervention outcomes that are durable compared to what would have happened in the absence of such interventions.

The definition emphasizes that biodiversity credits must represent positive biodiversity, meaning that they must demonstrate a real improvement in ecosystem conditions or species populations compared to a situation where no interventions were made. This success is not merely theoretical, but must be evidence-based supported by accurate scientific data, rigorous monitoring, and internationally recognized methodologies to ensure that the improvements are real and measurable. In addition, a voluntary biodiversity credit market is also emerging, allowing companies and other entities to invest in biodiversity enhancement as part of their Environmental, Social and Governance (ESG) strategy, which is gaining increasing attention in today’s business world (Kopnina et al., 2024).

Biodiversity credits provide a concrete and measurable way for companies to demonstrate commitment to sustainable practices. The McKinsey & Company study (2022) shows that companies with good sustainability strategies, including participation in biodiversity credits, tend to experience higher value growth and attract more investment from ESG funds. For governments, these schemes help meet international commitments by mobilizing resources for ecosystem restoration. As such, biodiversity credits not only support conservation targets, but also promote sustainable economic development.

In the face of the global biodiversity crisis, biodiversity credits are emerging as an innovative solution that supports conservation while offering economic benefits. With a growing number of countries and companies adopting them, these credits are becoming an important tool in our collective efforts to ensure a greener and more sustainable future for generations to come.