The biodiversity credit market benefits from the considerable experience of the voluntary carbon market. The vast majority of actors in the VCM have been well-intentioned but governance principles were not established rapidly enough. This market is already able to learn from the introduction of safeguards, integrity principles, assessment frameworks and other measures such as grievanceContinue reading “The voluntary carbon market has been criticized and faced considerable scrutiny recently. How could confidence or credibility be established in the biodiversity credit market?”
Level of confidence Archives
What is the expected pricing structure for carbon with biodiversity benefits versus a biodiversity credit?
Carbon credits with biodiversity benefits can currently be verified according to Verra’s Climate, Community & Biodiversity (CCB) Standards. Credits certified by the CCB Standard receive a premium of about 30% the price of the credit. This is based on buyer willingness-to-pay, not the cost to deliver those non-carbon benefits. Biodiversity credits, on the other hand,Continue reading “What is the expected pricing structure for carbon with biodiversity benefits versus a biodiversity credit?”
Who is expected to buy a biodiversity credit and why?
A range of actors might be interested in purchasing biodiversity credits, but they will likely be interested in different features. Many organizations with nature-related mandates or targets might find biodiversity credits an attractive vehicle to deliver verified outcomes. Environmental charities or non-governmental organizations Donors Governments Development banks Other public entities Investors Individuals Finally, the privateContinue reading “Who is expected to buy a biodiversity credit and why?”
Much of biodiversity is in the global south and/or stewarded by Indigenous Peoples and local communities who may not have secure land tenure. How will the risks of land dispossession be managed?
Indigenous Peoples’ territories contain 80% of the world’s remaining biodiversity. Ensuring IPs and LCs (Indigenous Peoples and Local Communities) are engaged in the biodiversity credit market is critical both to the success of the market and the achievement of global targets like those included in the GBF. A major advantage of biodiversity credits for IPsContinue reading “Much of biodiversity is in the global south and/or stewarded by Indigenous Peoples and local communities who may not have secure land tenure. How will the risks of land dispossession be managed?”
How will topics like additionality, permanence, and risk of leakage be managed?
The biodiversity credit market benefits from decades of experience of learnings within the voluntary carbon markets as well as in biodiversity offset compliance markets. Therefore, the biodiversity credit market is able to benefit from a strong starting point in terms of designing to address these topics. Practically, these topics are being addressed by the variousContinue reading “How will topics like additionality, permanence, and risk of leakage be managed?”
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.