Between October 21st and November 1st, the COP16 of biodiversity took place in the city of Cali, Colombia. This event, known as the “People’s COP,” aims to be an inclusive space that prioritizes the voices of local communities and promotes meaningful dialogue on biodiversity conservation and how these concepts can be transformed into business opportunities.
The following reflections arise from my participation in the talks and exhibitions at COP16, where these crucial topics were discussed and valuable experiences were shared, enriching the dialogue on biodiversity conservation and new business models.
The health of our ecosystems is crucial for species survival, human well-being, and sustainable economic development. However, financing positively impactful conservation projects is an ongoing challenge. In this context, biodiversity markets and biodiversity credits emerge as innovative solutions that promote both financial and social sustainability.
What are biodiversity credits?
Biodiversity credits, also known as biodiversity offsets, are mechanisms designed to encourage the conservation and restoration of ecosystems. For these credits to be effective, they must meet certain criteria. For example, they need to be measurable and verifiable, based on concrete evidence and demonstrating positive long-term results for biodiversity; they should seek equity and accessibility through tools and mechanisms that ensure funds reach local communities, avoiding greenwashing; they must have a clear structure; define the legal, financial, and commercial framework; and conduct adequate risk assessments.
The development of guidelines and reference frameworks will enable market actors to establish clear criteria for measuring and verifying impacts. This includes integrating environmental and social safeguards, ensuring that the benefits of biodiversity credits effectively reach local communities.
Despite the potential in habitat banks and biodiversity markets, several challenges still need to be addressed. For instance, strong local and multilateral regulation is essential to drive policies that support these mechanisms, as well as to stimulate constant innovation, since creating a biodiversity market requires taking risks and being willing to innovate. Moreover, the lack of clarity around land tenure can hinder project implementation, as can delays in reimbursements, which force communities to wait long periods to receive the benefits of their credits.
Towards an economy with new opportunities
To achieve a green economy, it is vital to involve local communities in biodiversity conservation. Both mandatory and voluntary compensations should be designed to generate positive social, economic, and environmental impacts.
The implementation of biodiversity markets represents a unique opportunity to align the interests of investors with those of local communities. As we continue to explore this field, it is essential to learn from carbon markets, capitalizing on those lessons to create a sustainable future.
Public policies should continue seeking innovative solutions, such as establishing a carbon tax, enacting laws for payment for environmental services, and promoting green businesses.
With a clear and collaborative approach, we can ensure that biodiversity is not only conserved but also valued economically. The wealth of our ecosystems and the well-being of communities depend on it. It’s time to act!