Biodiversity credits or biocredits are increasingly being pushed as a means for financing work on the various targets set under the Kunming-Montreal Global Biodiversity Framework (KMGBF).
What are Biodiversity credits?
- A biodiversity credit serves as an economic instrument aimed at financing activities that result in net positive biodiversity gains.
- In contrast to carbon or biodiversity offsets, which involve payments to compensate for a business’s detrimental effects on specific ecosystems, biodiversity credits enable companies to endorse nature-positive actions.
- These credits support long-term conservation and restoration efforts, representing a higher-order contribution that goes beyond merely offsetting negative impacts.
- Voluntary biodiversity credits have the potential to facilitate a nature-positive economic system for both the private and public sectors, provided there is transparent governance.
- This includes respectful and active engagement with indigenous people and local communities who play a crucial role in safeguarding natural ecosystems.
Biodiversity Credit Alliance (BCA):
- Launched at CoP15, the Biodiversity Credit Alliance promotes biocredits, seeking private investment to support biodiversity conservation.
- It was launched with support from UNDP, the United Nations Environment Programme Finance Initiative (UNEP FI) and the Swedish International Development Cooperation Agency (SIDA).
- The BCA exists to provide guidance for the establishment of a credible and scalablemarket that stands up to the scrutiny of multiple stakeholders.
- Indigenous Peoples and Local Communities, who are on the frontlines of the biodiversity crisis, are pivotal stakeholders.
- The BCA is composed of a coalition of scientists, academics, conservation practitioners, and standard setters.
- It has direct connections to Indigenous Peoples and Local Communities through its Communities Advisory Panel (CAP).
Mission:
- The BCA is a voluntary international alliance that unites diverse stakeholders to advance the objectives of the Kunming–Montreal Global Biodiversity Framework, with a particular focus on Targets 19(c) and (d).
- These targets encourage the private sector to invest in biodiversity, incorporating tools such as biodiversity credits with social safeguards.
- BCA will help steer the development of a voluntary biodiversity credit market by building a framework of high-level, science-based principles.
- It will provide guidance and encourage best practice for market participants on the application of these principles, empowering them to achieve and maintain equitable, high quality transactions that meet strict integrity criteria.
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