{"id":6176,"date":"2023-04-16T12:28:38","date_gmt":"2023-04-16T09:28:38","guid":{"rendered":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/?p=6176"},"modified":"2023-04-16T12:28:40","modified_gmt":"2023-04-16T09:28:40","slug":"biodiversity-credit-market-must-learn-from-carbon-offset-mistakes-commentary","status":"publish","type":"post","link":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/biodiversity-credit-market-must-learn-from-carbon-offset-mistakes-commentary","title":{"rendered":"Biodiversity credit market must learn from carbon offset mistakes (commentary)"},"content":{"rendered":"<div class=\"bulletpoints\">\n<ul>\n<li><em>The nascent biodiversity credit market is beginning to be used to finance measurable and positive outcomes for biodiversity.<\/em><\/li>\n<li><em>Not to be confused with biodiversity offsets, which compensate for the residual biodiversity impacts of development, credits have been used to conserve habitat for species such as spectacled bears and yellow-eared parrots.<\/em><\/li>\n<li><em>As the world looks forward to the upcoming biodiversity treaty meeting (COP15) in Montreal, &#8220;credits have a chance to learn from the mistakes of their carbon counterparts. It is critical that we get this right from the start,&#8221; two credit market CEOs argue in a new op-ed.<\/em><\/li>\n<li><em>This post is a commentary. The views expressed are those of the authors, not necessarily Mongabay.<\/em><\/li>\n<\/ul>\n<\/div>\n<p><a href=\"https:\/\/news.mongabay.com\/list\/biodiversity\/\" data-wpel-link=\"internal\">Biodiversity<\/a>\u00a0protection and restoration were key topics at COP27 in Sharm el-Sheikh, and for good reason. Ahead of the UN Climate Change Conference, which included a full\u00a0<a href=\"https:\/\/cop27.eg\/#\/presidency\/eventsThematicDetails\/biodiversity-day\" target=\"_blank\" rel=\"external noopener\" data-wpel-link=\"external\"><u>Biodiversity Day<\/u><\/a>\u00a0this year, the World Wildlife Fund released an assessment that revealed the catastrophic effect of human activity on wildlife: according to the\u00a0<a href=\"https:\/\/www.worldwildlife.org\/pages\/living-planet-report-2022\" target=\"_blank\" rel=\"external noopener\" data-wpel-link=\"external\">Living Planet Report 2022<\/a>, wildlife populations shrank by an average of 69% between 1970 and 2018.<\/p>\n<p>This level of\u00a0<a href=\"https:\/\/news.mongabay.com\/list\/biodiversity-crisis\/\" data-wpel-link=\"internal\">biodiversity loss<\/a>\u00a0is both tragic and dangerous for the future of our planet, since biodiverse ecosystems, such as forests, peatlands and oceans, are\u00a0<a href=\"https:\/\/www.un.org\/en\/climatechange\/science\/climate-issues\/biodiversity\" target=\"_blank\" rel=\"external noopener\" data-wpel-link=\"external\">natural carbon sinks<\/a>\u00a0that lose their efficiency when they become threatened.<\/p>\n<p>We must act quickly to reverse this damaging trend and protect our planet. Voluntary biodiversity credits \u2013 proactive investments from companies, nations and even individuals to protect wildlife \u2013 could be a powerful tool, but only if used correctly. The biodiversity credit market must learn the lessons from the carbon credit market and build a transparent, accountable and inclusive system from the beginning.<\/p>\n<p>Despite the promise they hold in fighting <a title=\"Public Awareness on Climate Change\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/public-awareness-on-climate-change-2\">climate change<\/a>, carbon offsets are yet to reach their full potential. There remains a lack of trust as there are many intermediaries, a level of uncertainty as to where the money is going, and a certain lack of standardization in the\u00a0<a href=\"https:\/\/www.ft.com\/content\/0305d45b-389f-4aad-9407-d923c954e741\" target=\"_blank\" rel=\"external noopener\" data-wpel-link=\"external\">generation of carbon credits<\/a>.\u00a0If we make the same mistakes twice, we\u2019ll condemn the <a title=\"Biodiversity on a Changing Planet\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/biodiversity-on-a-changing-planet\">biodiversity<\/a> market to a flailing future.<\/p>\n<figure id=\"attachment_256132\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-256132\" src=\"https:\/\/imgs.mongabay.com\/wp-content\/uploads\/sites\/20\/2022\/05\/20103753\/spectacled-bear-Tremarctos-ornatus-also-known-as-the-Andean-bear-2-768x512.jpg\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/imgs.mongabay.com\/wp-content\/uploads\/sites\/20\/2022\/05\/20103753\/spectacled-bear-Tremarctos-ornatus-also-known-as-the-Andean-bear-2-768x512.jpg 768w, https:\/\/imgs.mongabay.com\/wp-content\/uploads\/sites\/20\/2022\/05\/20103753\/spectacled-bear-Tremarctos-ornatus-also-known-as-the-Andean-bear-2-1200x800.jpg 1200w\" alt=\"A spectacled bear (Tremarctos ornatus), also known as the Andean bear.\" width=\"768\" height=\"512\" \/><figcaption class=\"wp-caption-text\">A spectacled bear (Tremarctos ornatus), also known as the Andean bear, caught on a camera trap. Image courtesy of WCS.<\/figcaption><\/figure>\n<p>Voluntary biodiversity credits that represent permanent biodiversity contributions have been one of the tools used to incentivize impactful nature conservation efforts. They are not to be confused with <a title=\"Understanding and Minimising Biodiversity Impact\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/uncategorized\/understanding-and-minimising-biodiversity-impact\">biodiversity offsets, which are specifically designed to compensate for the residual biodiversity impacts<\/a> of a project, after a mitigation hierarchy has been applied. Instead, biodiversity credits are used to finance actions that result in measurable positive outcomes for biodiversity, through the creation and sale of biodiversity units.<\/p>\n<p>Among recent examples of biodiversity credit generation, the\u00a0<a href=\"https:\/\/www3.weforum.org\/docs\/WEF_Biodiversity_Credit_Market_2022.pdf\" target=\"_blank\" rel=\"external noopener\" data-wpel-link=\"external\">World Economic Forum<\/a>\u00a0has recognized the work of several organizations, including Ekos in New Zealand for facilitating the sale of such credits from Sanctuary Mountain Maungatautari to Profile Group Limited in July 2022 and South Pole for launching the EcoAustralia credit combining carbon and biodiversity units. Our own companies, Terrasos and ClimateTrade, alongside XM, IDB Lab and <a title=\"The Congo Basin Forest Partnership (CBFP) Flash News 09\/2019 Newsletter\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/the-congo-basin-forest-partnership-cbfp-flash-news-09-2019-newsletter\">Partnership for Forest<\/a>, were also recognized for issuing and commercializing voluntary biodiversity credits generated from the Bosque de Niebla-El Globo Habitat Bank in Colombia.<\/p>\n<p>While each of these organizations\u2019 units represents different metrics \u2013 short-term outcomes such as pest reduction for Ekos, 30 years of <a title=\"Science Communication Course\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/science-communication-course\">conservation<\/a> in\u00a0a 10m2 area per credit for Terrasos and 1.5m2 of habitat\u00a0protection per credit for EcoAustralia \u2013 they have all been developed in an effort to have the highest transparency and accountability standards.\u00a0Their developers worked with all the relevant players in the <a title=\"Ecosystems and Conservation\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/ecosystems-and-conservation\">ecosystem<\/a>, including local communities, NGOs, governments and auditors, to ensure the positive impact of these units for biodiversity protection and restoration.<\/p>\n<p>Our organizations also maintained transparency around costs. Their price \u2013 \u20ac30 for the Terrasos voluntary biodiversity credit, for instance \u2013 is calculated by adding up the costs of implementing and <a title=\"Developing curricula for biodiversity monitoring and conservation in Tanzania (CONTAN)\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/developing-curricula-for-biodiversity-monitoring-and-conservation-in-tanzania-contan\">monitoring conservation<\/a> measures, including technical, financial and legal management, as well as landowner incentives and compensation for the credit\u2019s lifespan. Each credit is only sold once, and prices will necessarily vary depending on the specifications of each project issuing biodiversity credits. Credits are performance-based, and are only put on the market when they have <a title=\"Invitation to register for the achieving sustainable forest management through research and development in SADC webinar\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/invitation-to-register-for-the-achieving-sustainable-forest-management-through-research-and-development-in-sadc-webinar\">achieved verifiable performance and management<\/a> milestones.<\/p>\n<p><em>See related:\u00a0<a href=\"https:\/\/news.mongabay.com\/2021\/10\/look-beyond-carbon-credits-to-put-a-price-on-natures-services-experts-say\/\" data-wpel-link=\"internal\">Look beyond carbon credits to put a price on nature\u2019s services, experts say<\/a><\/em><\/p>\n<figure id=\"attachment_263043\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-263043\" src=\"https:\/\/imgs.mongabay.com\/wp-content\/uploads\/sites\/20\/2022\/11\/29190059\/yellow-eared-parrot-1-e1669748650385-768x512.jpg\" alt=\"Yellow eared parrot, (Ognorhynchus icterotis) photographed in Jardin, Antioquia, Colombia. Image by F\u00e9lix Uribe via Flickr (CC BY-SA 2.0).\" width=\"768\" height=\"512\" \/><figcaption class=\"wp-caption-text\">Yellow-eared parrot, (Ognorhynchus icterotis) photographed in Jardin, Antioquia, Colombia. Image by F\u00e9lix Uribe via Flickr (CC BY-SA 2.0).<\/figcaption><\/figure>\n<p>This is perhaps where they differ the most from <a title=\"Managing the Eastern Arc Mountain forests for Carbon credits and emission trading; Local knowledge and climate change adaptation project (2007 \u2013 to date).\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/research\/managing-the-eastern-arc-mountain-forests-for-carbon-credits-and-emission-trading-local-knowledge-and-climate-change-adaptation-project-2007-to-date\">carbon credits<\/a>, which don\u2019t always communicate clearly about their pricing structure. Of course, the voluntary carbon market is extremely complex and diverse, with an estimated\u00a0<a href=\"https:\/\/carboncredits.com\/real-voluntary-carbon-market-value-is-2-billion\/\" target=\"_blank\" rel=\"external noopener\" data-wpel-link=\"external\">170 different types of eligible projects<\/a>, whereas the biodiversity credit market is only nascent. Additionally, carbon is an intangible asset, and the positive impact of credits can be difficult to measure and communicate properly, as opposed to <a title=\"Nature protection and restoration\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/nature-protection-and-restoration\">nature protection<\/a> and biodiversity, which is much more palpable since it can be tied to specific species. For instance, the Bosque de Niebla-El Globo Habitat Bank is home to the yellow-eared parrot and the spectacled bear, two endemic and endangered species of the Andes, and Terrasos\u2019 biodiversity credits cover 345 hectares of a vulnerable ecosystem, the <a title=\"Species Conservation Grant\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/species-conservation-grant\">conservation of 154 plant species<\/a>, 21 mammals, 154 birds and 16 water springs.<\/p>\n<p>But current efforts to improve integrity through initiatives like the Integrity Council for the Voluntary Carbon Market and its Core Carbon Principles, as well as requests to\u00a0<a href=\"https:\/\/www.reuters.com\/business\/cop\/cop27-regulators-plan-closer-scrutiny-carbon-markets-2022-11-09\/\" target=\"_blank\" rel=\"external noopener\" data-wpel-link=\"external\">increase regulatory scrutiny<\/a>, are proof that the carbon market has lacked transparency since its inception. This is the biggest mistake biodiversity credit developers must avoid to ensure market adoption and generate positive impact in the fight against climate change.<\/p>\n<p>As a mechanism for nature <a title=\"Restoring a transitional cloud forest in Costa Rica\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/restoring-a-transitional-cloud-forest-in-costa-rica\">restoration<\/a> and preservation, biodiversity credits must be transparently generated and priced. Their <a title=\"LIVELIHOODS AND COMMUNITY DEVELOPMENT MANAGER\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/livelihoods-and-community-development-manager\">developers should also involve local communities<\/a>, including Indigenous peoples, at the beginning of projects, and pay landowners and workers a fair price, ensuring that it is an inclusive, results-driven market.<\/p>\n<p>Biodiversity credits are not competitors to carbon offsets: they are designed to work alongside the carbon market, allowing <a title=\"Funding for Climate or Clean Energy Projects\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/funding-for-climate-or-clean-energy-projects-3\">funding to reach even the smallest climate change mitigation projects<\/a> to protect threatened ecosystems. But as the newest sibling in the nature asset family, biodiversity credits have a chance to learn from the mistakes of their carbon counterparts. It is critical that we get this right from the start, because biodiversity is crucial to <a title=\"Prince Albert II of Monaco Foundation: Pelagos Initiative\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/prince-albert-ii-of-monaco-foundation-pelagos-initiative\">climate action<\/a> \u2013 and there is no time to waste. <em>Francisco Benedito is CEO of ClimateTrade and Mariana Sarmiento is CEO of Terrasos.<\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The nascent biodiversity credit market is beginning to be used to finance measurable and positive outcomes for biodiversity. Not to be confused with biodiversity offsets, which compensate for the residual biodiversity impacts of development, credits have been used to conserve habitat for species such as spectacled bears and yellow-eared parrots. As the world looks forward [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6177,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/posts\/6176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/comments?post=6176"}],"version-history":[{"count":5,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/posts\/6176\/revisions"}],"predecessor-version":[{"id":6182,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/posts\/6176\/revisions\/6182"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/media\/6177"}],"wp:attachment":[{"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/media?parent=6176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/categories?post=6176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/tags?post=6176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}