This paper explores the development of biodiversity credit markets, highlighting the importance of a robust governance framework supported by laws, policies, and regulations. It examines current initiatives in both the public and private sectors and offers principles and recommendations for scalable, high-integrity markets.
Highlights
- Financial gap: current conservation spending is $124-$143 billion annually, with a $598-$824 billion gap needed to address global biodiversity loss.
- Case studies: examples from New Zealand, Colombia, Australia, and others showcase current initiatives.
- International frameworks: the Kunming-Montreal Global Biodiversity Framework highlights the importance of biodiversity credits for financial mobilization, emphasizing the need for standardized rules and safeguards for Indigenous and local communities.
- Financial assets and legal enablers: identifies legal mechanisms to enhance private sector investment, such as natural capital accounting and risk disclosure.
- Governance framework: stresses the need for stakeholder engagement to build a governance framework that ensures market integrity and confidence.
- Principles and recommendations: proposes five key principles for achieving high-integrity outcomes in biodiversity credit markets.
