Voluntary biodiversity credits are certificates that represent a measured and evidence-based unit of positive biodiversity outcome that is durable and additional to what would have otherwise occurred. These credits are generated through actions that improve biodiversity, reduce threats to it, or prevent an anticipated decline. They are a powerful tool for businesses looking to contribute to biodiversity conservation and achieve nature-positive outcomes.
Biodiversity credits play a crucial role in a nature-positive plan by providing businesses with a tangible way to invest in biodiversity restoration. These credits can be purchased to offset biodiversity impacts, support conservation projects, and contribute to the achievement of global biodiversity goals. As part of a broader sustainability strategy, biodiversity credits help businesses demonstrate their commitment to preserving and enhancing natural ecosystems.
The market for voluntary biodiversity credits is projected to grow significantly in the coming years. By 2030, the global market is expected to reach $2 billion, with potential growth to $69 billion by 2050.
This rapid expansion presents a significant opportunity for businesses to engage in the biodiversity credits market and support global conservation efforts.
Businesses can leverage biodiversity credits to enhance their sustainability credentials, meet regulatory requirements, and gain a competitive edge. By investing in biodiversity credits, companies can contribute to the restoration of natural ecosystems, offset their environmental impacts, and support global efforts to halt biodiversity loss. This not only helps businesses achieve their sustainability goals but also positions them as leaders in the transition to a nature-positive economy.
Biodiversity Credits for Business: Resource Hub
For businesses looking to deepen their understanding of biodiversity credits and nature-positive finance, you can access key reports below.
Reports
Below are a range of reports covering the definitions of biodiversity credits, drivers for demand, and overview of the burgeoning biodiversity market.
Definition of a Biodiversity Credit: Published by the Biodiversity Credit Alliance
This report brings together many perspectives to present an inclusive but clear definition that sets minimum standards for biodiversity credits and projects associated with them.
State of Voluntary Biodiversity Credit Markets by Pollination Group
A global review of biodiversity credit schemes by Pollination identifies key characteristics and market trends across the 8 schemes. It also identifies six key attributes of voluntary biodiversity credit schemes that should be prioritised for improvement over coming years.
Scaling Investments in Nature The Next Critical Frontier for Private Sector Leadership by the World Economic Forum
This report takes a practical look at the investment landscape for nature and Nature-based Solutions
The Investment Case for Nature by KPMG
This report provides an overview of investment strategies for closing the nature finance gap.
Biodiversity Credits: A guide to support early use with high integrity by the World Economic Forum
This report offers initial guidance for companies to take early action with high integrity on biodiversity credits while standards and advice are evolving.
Review frameworks for Biodiversity Schemes by Pollination Group
This report provides a useful tool for participants in voluntary biodiversity credit markets, including scheme and project developers, buyers and investors.
Natural Capital: Why it’s vital to value nature a report by KPMG
A report outlining why not fully valuing nature is generating significant risks to our economy.
Demand-side Sources and Motivation for Biodiversity Credits by the Biodiversity Credit Alliance
This report outlines potential sources of demand for biodiversity credits, demand drivers, and factors that may influence demand.
Communities and nature markets: Building just partnerships in Biodiversity Credits by the Biodiversity Credit Alliance
This report explores the business case for investors to support Indigenous- and locally-led approaches in biodiversity credit markets on fair terms, that ultimately lead to reduced risk and better outcomes for all stakeholders.
Articles
Below are a range of articles about the burgeoning biodiversity market from publications including the Wall Street Journal, World Economic Forum, Impact Economist and many more.
Bridging the gap: rethinking business and finance in wildlife conservation by the World Economic Forum
This article and the critical role of the private sector bringing in innovative solutions to achieve large-scale and long-term success in wildlife conservation and how Biodiversity credits can play a part.
How biodiversity credits can deliver benefits for business, nature and local communities by the World Economic Forum
This article explores how the Global Biodiversity Framework can provide a robust ‘Paris Agreement’ for nature to bend the curve on nature loss by 2030.
Creating a market for biodiversity by Impact Economist
This article explores how biodiversity markets help finance nature conservation but more scalable projects and rigorous impact assessment methods are needed.
Australia wants to turn Wilderness restoration into an investible market by the Wall Street Journal
An article exploring demand for biodiversity credits and outlining early leaders developing units in Australia.
Websites and Alliances
Below are a range of websites providing insights into the global biodiversity market and detailing the developers creating credits.
Biodiversity Credit Alliance.
The BCA exists to provide guidance for the establishment of a credible and scalable market that stands up to the scrutiny of multiple stakeholders.
The Biodiversity Council
An independent expert group founded by 11 Australian universities to promote evidence-based solutions to Australia’s biodiversity crisis.
Marketplace for Nature
A platform developed by Pollination Group that maps voluntary biodiversity credit initiatives across the globe.
