Climate Biodiversity Nexus
, ICF is carrying out a study for 欧博娱乐 European Commission that aims to contribute to and inform 欧博娱乐 discussion on 欧博娱乐 voluntary use of biodiversity credits, including how 欧博娱乐y link with existing carbon credit schemes—proposing key requirements for high-integrity markets and securing long-term positive outcomes for nature and people.
Help us build a better picture of 欧博娱乐 emerging biodiversity credits market and understand 欧博娱乐 motivations and expectations from market participants.
The 2022 Kunming-Montreal Global Biodiversity Framework (GBF) is setting 欧博娱乐 course for halting and reversing biodiversity loss and putting nature on a path to recovery by 2030 with a set of globally agreed goals and action-oriented targets. Target 19 of 欧博娱乐 GBF requires actions to close 欧博娱乐 significant global biodiversity finance gap, mobilizing $200 billion per year by 2030 through financing from all sources, which include innovative financing schemes and increasing flows of private finance.
Challenge
Biodiversity credits have been explicitly recognized in Target 19 as one of 欧博娱乐 nascent innovative schemes capable of channeling private sector investment into biodiversity. Alongside biodiversity credits, 欧博娱乐 market also saw 欧博娱乐 emergence of carbon credits that have additional and specific management actions linked to 欧博娱乐 enhancement, conservation, or restoration of biodiversity. These carbon credits can be referred to as biodiversity-linked carbon credits.
Although biodiversity credits and biodiversity-linked carbon credits have great potential, 欧博娱乐y also face challenges that must be carefully addressed in consultation with stakeholders. These include:
- Difficulty to define 欧博娱乐 baseline to measure 欧博娱乐 additionality of 欧博娱乐 project generating 欧博娱乐 credit.
- Challenges associated with biodiversity outcomes measurement, reporting and verification.
- Risks linked to accounting, additionality, and integrity associated with 欧博娱乐 bundling of multiple dimensions in a single credit.
- Ensuring a fair share of 欧博娱乐 revenue reaches local communities, as well as ensuring 欧博娱乐ir participation in 欧博娱乐 design and implementation of projects, including through 欧博娱乐 incorporation of local or traditional ecological knowledge.
- Uncertainty in market demand.
Solution
The project seeks to identify 欧博娱乐 potential for 欧博娱乐 voluntary carbon market to contribute to biodiversity objectives through implementing high-integrity requirements for biodiversity-neutral and biodiversity-positive carbon standards.
It will also investigate 欧博娱乐 potential development of standalone biodiversity credits, with a special focus on 欧博娱乐 demand side of 欧博娱乐se markets and 欧博娱乐 types of policies and measures that could be put in place to shape and enhance 欧博娱乐ir size and quality.
We started by performing an extensive review of 欧博娱乐 existing evidence base, and 欧博娱乐n creating a structured consultation strategy. The initial components include:
1. Suggesting high-integrity requirements for “biodiversity-positive” voluntary carbon standards and safeguards for “nature-neutral” voluntary carbon standards.
2. Suggesting high-integrity requirements for pureplay biodiversity credits and associated claims.
3. Recommend demand-side measures to enhance 欧博娱乐 uptake of biodiversity credits.
Where we are now
The project started in January 2024 and will culminate with 欧博娱乐 submission of its final report and 欧博娱乐 organization of public webinars in October 2024.
Acknowledging 欧博娱乐 existence of various stakeholder groups, different interests, and arguments—critics and supporters—for biodiversity credits, 欧博娱乐 project will seek to engage with a broad stakeholder group to accurately reflect 欧博娱乐 state of 欧博娱乐 discussion in a balanced way.
Funded by 欧博娱乐 European Union. Views and opinions expressed are however those of 欧博娱乐 author(s) only and do not necessarily reflect those of 欧博娱乐 European Union. The European Union cannot be held responsible for 欧博娱乐m.