In a room filled with enthusiasm, discussions about biodiversity credits drew attention at the Cop16 biodiversity conference in Colombia. Experts dismissed the idea of a global market for these credits, emphasizing the importance of local compensations. This framework, guided by influential figures, seeks to avoid the pitfalls encountered by carbon credits by proposing robust and localized standards. Hopes rest on creating a market that respects ecological integrity while helping to close the $700 billion funding gap for nature restoration.
An increasing number of experts express concerns regarding biodiversity compensation on a global scale, stating that it “does not work.” At the Cop16 biodiversity conference in Cali, Colombia, new voluntary standards for biodiversity credits were introduced, rejecting the possibility of creating a global trading market. According to Dame Amelia Fawcett of the International Advisory Panel on Biodiversity Credits, it would be more appropriate to use these credits locally, to offset the loss of similar habitats. The idea is to create a robust framework that would avoid the mistakes of the carbon credits market. However, there are voices raising concerns about integrity and risks to the environment and communities, highlighting the need to reform harmful subsidies rather than focusing on credits.
the local framework for biodiversity credits
The new framework for biodiversity credits emphasizes local compensation, thus dampening the idea of a large international trading market. For example, the destruction of a wetland in Kent can be offset by a similar restoration project in the same area. This approach aims to ensure that the compensation provided truly benefits the affected local ecosystem, thus helping to maintain the ecological integrity of the region.
Despite global interest in credit systems, fewer than one million biodiversity credits have been sold to date. This lack of demand is partly due to concerns about the effectiveness and integrity of distant compensations. It is crucial to ensure that restoration projects are fully adapted to local needs to avoid the risks of manipulations or superficial approaches.
rethink funding strategies
Funding strategies must evolve by integrating a more local and targeted approach. Creating a credit market that focuses on integrating local initiatives can offer an innovative way to close the funding gap for biodiversity protection, estimated at about $700 billion per year. The roots of this model lie in validation by local experts and independent organizations of conservation projects to ensure their effectiveness.
shaping a biodiversity-compatible future
Diverse actors, whether from governments, the private sector, or environmental organizations, must unite to establish transparent and faithful rules to the spirit of the new agreement. These alliances are essential to build a nature-positive economy that values biodiversity and gathers the necessary funds for its preservation. The COP16 declaration reflects a growing consensus that every local appropriation of initiatives must prioritize measurable positive impact on ecosystems.
