Biodiversity

Biodiversity restoration and preservation is important part of the puzzle to restore our climate. This is an attempt to understand what does it mean and showcase global examples of ongoing efforts. According to Word Economic Forum, biodiversity credits are a verifiable, quantifiable, and tradeable financial instrument that rewards positive nature and biodiversity outcomes (eg, ecosystems and natural habitats) via the creation and sale of either land or ocean-based biodiversity units over a fixed period.

If they are embedded with principles of high-integrity, equity and inclusion, and transparency, biodiversity credits can generate benefits for local communities and for the Indigenous People. These type of credits can create positive value for businesses by reducing exposure to physical natural risks since the land ecosystem could be maintained in long run reducing sudden climate shocks. They also help to keep the businesses in pace with regulatory changes, supporting positive nature outcomes aligned with consumer preferences, and securing access to competitive finance.