5-January-2024-Editorial

WHY 2024 MAY SEE ACTION ON BIODIVERSITY CREDITS

Biodiversity Credits (Biocredits) have emerged as a financial tool garnering attention for funding initiatives outlined in the Kunming-Montreal Global Biodiversity Framework (KMGBF). Instituted during the 15th Conference of Parties (CoP15) of the Convention on Biological Diversity (CBD), the KMGBF sets ambitious goals for biodiversity conservation globally.

Biodiversity Credits:

• Biodiversity credits function as financial instruments, akin to carbon credits, but with a primary focus on preserving biodiversity.
• They aim to attract private investments directed toward initiatives aligned with international biodiversity conservation agreements, such as the KMGBF under CBD.
• The Biodiversity Credit Alliance, launched at CoP15, actively promotes biocredits, engaging various stakeholders, including governmental bodies, non-profits, and private enterprises.

Implementation and Noteworthy Initiatives:

Ocean Conservation Commitments (OCCs):

• Launched in September 2023, OCCs are linked to Niue’s Moana Mahu Marine Protected Area.
• Each OCC, priced at USD 148, represents a 20-year commitment to support conservation efforts.
• Notable investments have come from NGOs like the Blue Nature Alliance and Conservation International, along with private donors.

Wallacea Trust:

• A UK-based organization focusing on biodiversity and climate research, the Wallacea Trust has committed 5 million biodiversity credits.
• This commitment underscores growing interest from research-oriented entities in utilizing biocredits for conservation.

Challenges and Uncertainties:

• Regulatory Frameworks: Establishing robust regulatory frameworks is essential to ensure the fair and effective functioning of biodiversity credits.
• Pricing Structures: Ensuring fairness in pricing for both buyers and sellers is a challenge that needs careful consideration.
• Alignment with Conservation Goals: There is a need to ensure that biodiversity credits genuinely serve biodiversity conservation rather than corporate interests.

Initiatives Related to Biodiversity Conservation:

India:

• India Business & Biodiversity Initiative (IBBI)
• Wetland (Conservation and Management) Rules 2010
• National Plan for Conservation of Aquatic Ecosystem
• Wildlife Crime Control Bureau
• Biological Diversity Act, 2002

Global:

• Nagoya Protocol
• Convention on International Trade in Endangered Species of Wild Fauna and Flora
• Worldwide Fund for Nature (WWF)

Way Forward:

• Regulation and Monitoring: There is an urgent need to establish effective regulation and monitoring mechanisms for biodiversity credits.
• Fair Pricing: Ensuring that pricing structures are fair for both sellers and buyers is crucial for the success and credibility of biodiversity credits.
• Government Leadership: Governments, especially those of the United Kingdom and France, play a pivotal role in creating a roadmap for a high-integrity biodiversity credits market.

Conclusion:

The concept of biodiversity credits presents a promising avenue to address the financial challenges associated with biodiversity protection outlined in the KMGBF.

However, the success of this approach hinges on meticulous regulation, fair pricing, and a genuine commitment to biodiversity conservation.

While private sector involvement is notable, it is imperative to navigate potential conflicts of interest to ensure the integrity of biodiversity credit initiatives.

The leadership of governments in creating a robust regulatory framework becomes pivotal for the credibility and success of biodiversity credits as a conservation tool.