Carbon markets and biodiversity markets - what’s the same, what’s different?
There are some parts of our carbon market that, if we applied it to a market for biodiversity credits, wouldn’t achieve great things for biodiversity. On the other hand, learning from some of the strengths of the carbon market could help unlock much- needed finance for biodiversity conservation around the world. Also, talking about biodiversity action as an extension of the simpler carbon credit system folks are familiar with might be a useful way to open the door to the bigger goal of
biodiversity action.
These differences are important to understand what we are, and are not, talking about when looking at designing biodiversity credit systems. And, by comparing the two systems, we can help those who already are familiar with carbon credits to also understand and buy biodiversity credits, increasing the funding available to
biodiversity conservation.
What’s the key difference to remember? We want LESS carbon everywhere around the world, but we want MORE biodiversity and differently in different places. So, the same systems won’t work for both.
However, common features are expected to be integrity and transparency mechanisms, where what’s now being established in carbon markets can be
implemented in biodiversity markets right out of the gate. Biodiversity markets can learn from the carbon market, avoid its mistakes, and head straight for the highest- integrity, most impactful approaches.
What’s looking likely to be the same:
The need for standards, principles, registries, monitoring, and reporting, but will need biodiversity-specific approaches for each.
Global integrity initiatives, similar to VCMI and ICVCM in the carbon market space.
Principles of additionality and equivalency, but how they’re applied will be tailored to biodiversity’s needs.
A need for global claims guidance: despite no offsetting-related trading, purchases will likely still be international as buyers will align purchases with their international supply chains.