{"id":13729,"date":"2023-06-30T18:20:13","date_gmt":"2023-06-30T16:20:13","guid":{"rendered":"https:\/\/www.etifor.com\/en\/?p=13729"},"modified":"2026-10-05T15:10:53","modified_gmt":"2026-10-05T13:10:53","slug":"biodiversity-credits","status":"publish","type":"post","link":"https:\/\/www.etifor.com\/en\/updates\/biodiversity-credits\/","title":{"rendered":"Biodiversity Credits<\/span>"},"content":{"rendered":"
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Direct and indirect drivers of biodiversity loss. Source: IPBES, 2019<\/a><\/em><\/p>\n<\/div>

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Why biodiversity matters?<\/h2><\/span>
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The Living Planet Report<\/a> (2022) defines Biodiversity as \u201cthe variety of life and interactions between living things at all levels on land, in water and in the sea, and air\u201d (WWF 2022, pg.17). Food, medicines, energy and fibers, are just some of the key services provided by terrestrial, freshwater and marine ecosystems<\/a>. These ecosystems also provide for physical and psychological experiences, learning and inspiration, while supporting identities and a sense of place. Everything that enables us to live comes from nature (Ibidem).<\/p>\n

Over the last 50 years, we have lost 1-2.5% of birds, mammals, amphibians, reptiles and fish, and about one million plants and animal species are at risk of extinction<\/strong> (WWF, 2022). Unsustainable use of land and sea resources, climate change, pollution and invasive alien species are the main drivers of biodiversity loss<\/strong>. In particular, land use change accounts for -25% of biodiversity loss and it is estimated that 32% of the world\u2019s terrestrial area has been affected by it (Winkler et al., 2021). These are exacerbated by indirect drivers of biodiversity depletion, such as overpopulation, unsustainable demand for energy, food, and other materials, use of inefficient technologies, different modalities of managing natural resources, conflicts and epidemics (Ibidem)<\/p>\n<\/div>

<\/i><\/i><\/span>Click here to read the full introduction<\/span><\/a><\/h4><\/div>
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To date, measures aimed at halting biodiversity loss have failed in most countries.<\/strong><\/span><\/p>\n

None of the 20 Aichi targets<\/a> has been achieved and, likewise, we are failing to respect the Paris Agreement goal of keeping global temperatures below 2\u00b0C<\/strong> (WWF, 2022). Climate change and biodiversity loss are not just environmental concerns, they are also a threat to economic development and social security. The failure to properly address these issues means that we will most likely fail to achieve the 17 UN Sustainable Development Goals (SDGs).<\/span><\/p>\n

According to the Paulson Institute<\/a> (2020), if we want to stop biodiversity loss by 2030, we need to invest globally between US$ 722 and 967 billion dollars each year over the next ten years. Considering what is currently spent, there is a biodiversity financing gap of approximately US$ 711 billion dollars per year (GEF\/IIED, 2023).\u00a0 Much of what is needed is better deployment of existing funds and smarter policy and investment choices, shifting the flow of capital away from harmful behaviors and towards outcomes that benefit nature (Ibidem). The 15th Conference of Parties to the UN Convention on Biological Diversity<\/a> adopted the \u201c<\/span>Kunming-Montreal Global Biodiversity Framework<\/a>\u201d<\/b>\u00a0which includes four goals and 23 targets for achievement by 2030. Target 19, specifically, calls for \u201cSubstantially and progressively increase the level of financial resources from all sources, in an effective, timely and easily accessible manner, including domestic, international, public and private resources (\u2026) and by 2030, mobilizing at least US$ 200 billion dollars per year\u201d. Stimulating <\/span>innovative schemes<\/span><\/a> such as <\/span>payment for ecosystem services<\/a><\/strong>, green bonds, biodiversity offsets and credits<\/strong>, benefit-sharing mechanisms, with environmental and social safeguards are mentioned as different key avenues for achieving such a target<\/strong>.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>

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What are biodiversity credits?<\/h2><\/span>
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Biodiversity Credits are an economic instrument that can be used to finance projects and activities that produce positive and measurable goals for biodiversity (e.g., reintroduction of endangered species, ecosystem restoration and habitat protection, etc.) through the creation and sale of biodiversity units (WEF, 2022). As such, they can be defined as <\/span>Payment for Ecosystem Services<\/span><\/a>.<\/span><\/p>\n

Biodiversity credits can help the public and private sector to realize an economic system that generates positive outcomes for the environment, but only if the following conditions apply (WEF, 2022):\u00a0<\/span><\/p>\n