Chapter 02 · Nature, land & waterBiodiversity & Nature
Biodiversity credit
Definition
A tradable certificate issued when measurable positive outcomes for biodiversity are achieved over a defined period. Units are typically built from a combination of land area, measured ecological gains (through a suite of metrics) and the duration of the commitment. Definitions vary between schemes, and there is no single agreed standard — a key difference from carbon credits, which at least share a common unit (one tonne of CO₂e).
References
Working definition (area × measured gain × duration); market size today (~$8m) and projections ($0.8–2bn 2030; $6–69bn 2050); integrity conditions (science, governance, benefit-sharing); no-offset positioning.
Overview
What it means
Biodiversity credits are explicitly designed not to be offsets: most credible schemes reject the idea that a credit can "cancel out" damage elsewhere, positioning credits instead as positive contributions to nature. The market is embryonic — valued at roughly $8 million today, with projections ranging from $0.
8–2 billion annually by 2030 and wildly divergent estimates ($6–69 billion) by 2050 — reflecting genuine uncertainty about demand, measurement and governance.
How it is used
Pilots operate in Australia, Colombia, France and elsewhere, mostly voluntary; certification bodies and NGOs are developing integrity frameworks covering baseline-setting, additionality, permanence and benefit-sharing with indigenous peoples and local communities. Policy interest follows the Kunming-Montreal framework's finance targets.
Why it matters
The instrument could mobilise long-term finance for locally led conservation — or replicate carbon offsetting's integrity failures in a field where measurement is far harder. How "credit" is defined (outcome vs activity, offset vs contribution) will decide which.
Definitions and controversy
No consensus definition exists; offsetting-style use (biodiversity offsets traded as credits, for example under England's biodiversity net gain rules) is a related but distinct application with its own controversies.