Payments for ecosystem services (PES) occur when the beneficiaries or users of an ecosystem service make payments to the providers of that service. In practice, this may take the form of a series of payments in return for receiving a flow of benefits or ecosystem services. The basic idea is that whoever provides a serviceContinue reading “How do biodiversity credits differ from payments for ecosystem services?”
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How is a biodiversity credit different from a biodiversity offset? / Can biodiversity credits be used to compensate for negative impacts on biodiversity?
Broadly speaking, a “biodiversity credit” is an instrument that can potentially be used in a variety of ways, while an “offset” points specifically to the use of a unit to either meet regulatory requirements or to make claims (to the public or specific stakeholders) about what an organization, project or product has achieved in termsContinue reading “How is a biodiversity credit different from a biodiversity offset? / Can biodiversity credits be used to compensate for negative impacts on biodiversity?”
How is a biodiversity credit different from a carbon credit for nature-based solutions?
Nature-based solutions carbon credits have been in the market for some time, and in most cases positive impacts to biodiversity are considered a “co-benefit” that is in addition to the climate impact. For the time being, these biodiversity benefits remain unquantified, while they are often considered “premium” carbon credits and are typically sold at aContinue reading “How is a biodiversity credit different from a carbon credit for nature-based solutions?”
Are biodiversity credits tradable and how are they retired?
Biodiversity credits are not currently traded in any secondary market (NatureFinance, 2023). While biodiversity offset units in the compliance market can be retired, the application of this concept in the voluntary biodiversity credit market remains unclear (NSW Government, 2023).
How are the biodiversity outcomes associated with credits measured?
While still under discussion, many currently proposed biodiversity crediting methodologies use measurements and indicators that revolve around 1) species, ecosystems, level of threat, the significance of the biodiversity, etc.; 2) the size of area in question; and 3) time period over which impact is achieved.
What is a biodiversity credit?
The concept of biodiversity credits is still being defined, as this is a nascent market. The BCA definition is “A biodiversity credit is 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” (BCA, 2024). There are a number of emergingContinue reading “What is a biodiversity credit?”