What are Biodiversity Credits?
Biodiversity credits are an innovative economic instrument designed to finance the conservation and restoration of biological diversity. They are also known as "biodiversity bonds" or "conservation units."
What exactly are they?
A biodiversity credit represents a quantifiable and certified
- A biodiversity credit represents a quantifiable and certified unit of positive biodiversity benefits generated by a conservation or ecological restoration project.
- For example:
- 1 credit could be equivalent to:
- The protection of 1 hectare of critical habitat for endangered species.
- The restoration of a degraded ecosystem that allows the return of native species.
- The improvement in the quality of water or soil in a given area.
How are they calculated?
There is no universal standard (unlike carbon, which is measured in CO₂eq ), but they are generally based on metrics such as:
Habitat extent and quality
Hectares preserved
restored
Keystone species
(threatened populations of fauna and flora).
Ecological connectivity
(linking ecosystem fragments).
Ecosystem services
(pollination, erosion control, etc.).
Methodologies such as: Biodiversity Metric (United Kingdom) or Habitat Hectares (Australia) Biocarbon Registry
Projects that generate them:
Conservation
- Conservation of primary forests (avoid deforestation).
- Restoration of wetlands, mangroves or grasslands.
Connectivity
- Biological corridors to connect protected areas.
- Sustainable farm management to reduce impacts on biodiversity.
Development time:
Duration and requirements
- It depends on the ecosystem and the objectives, but they are usually long-term projects.
- They require scientific baselines and continuous monitoring.
Main certifying agencies:
Plan Vivo
Standard for Biodiversity
Verra
SD VIStandard
BioCarbon Registry
BioCarbon Registry
Wildlife Habitat Council
WHC
Biodiversity Credit Alliance
in development
Market prices:
Very variable from:
$5 - $150+ USD for creditThey depend on:
- Location and rarity of the ecosystem.
- Endangered species involved.
- Corporate demand (e.g. companies with ESG goals).
- Certification and methodological rigor.
Who buys them?
Companies with commitments
Net Positive Impact Commitments .
Developers
who need to offset residual impacts (e.g. construction).
Governments
to meet environmental goals.
ONGs and funds.
or conservation
Key difference with carbon credits:
🌫️ Carbon
- Focused on capturing or reducing emissions (metric: CO₂eq ).
🦋 Biodiversity Credits
- Focused on the protection of species and ecosystems (metrics: habitat, species, etc.).
Practical example:
A construction company impacts 10 hectares of native forest. To compensate, it purchases biodiversity credits equivalent to 15 hectares restored in another area, achieving a net biodiversity gain.