New Report: Credit Where Credit’s Due

Estimates show that over half of the world’s gross domestic product (GDP) depends on nature. But how can we use finance to tackle the sharp declines in biodiversity across the world and build a resilient future for people and the planet? One route to achieving this is through the development of high-integrity nature markets and innovative mechanisms such as voluntary biodiversity credits. 

In December 2023, Blue Marine Foundation, Plan Vivo Foundation and Goodcarbon led a market survey aimed at establishing the private sector’s level of interest and understanding of the emerging biodiversity credit market.

The survey revealed companies’ motivations to purchase biodiversity credits, including important attributes within a credit, and what would incentivise or drive a higher price for credits. Respondents indicated that credits that were evidence-based, delivered benefits to local communities and were third-party audited were most important. It also revealed that credits that supported Indigenous Peoples and local communities (IP&LCs) and endangered habitats and species would be valued higher. 

The report identifies three core principles for financing much-needed initiatives dedicated to protecting and restoring biodiversity: 

▪ Clear communication on the biodiversity assessment methodology and outcomes
▪ Integrated community engagement and participation
▪ Fair and equitable pricing

To reverse nature loss by the global target of 2030, companies need to spend an estimated $600 – 800 billion, annually. The emerging biodiversity credit market offers us a way to achieve restoration and protection of nature at scale and requires building a market based on trust and integrity and include transparent, robust and equitable projects.