Context:
Biodiversity Credits, proposed as a financial mechanism, aim to support initiatives aligned with the ambitious targets of the Kunming-Montreal Global Biodiversity Framework (KMGBF). Established during the 15th Conference of Parties (CoP15) of the Convention on Biological Diversity (CBD), the KMGBF outlines comprehensive goals for biodiversity conservation, sustainable use, and fair benefit sharing.
Relevance:
GS III: Environment and Ecology
Dimensions of the Article:
- What is Biodiversity Credit?
- Biodiversity Credit Alliance
- Implementation and Initiatives
What is Biodiversity Credit?
- Biodiversity credits serve as a financial tool to generate funds dedicated to conserving, restoring, and sustainably utilizing areas abundant in biodiversity.
- Similar to Carbon Credits, they focus specifically on biodiversity preservation instead of mitigating adverse environmental impacts.
- The primary objective is to attract private investments that align with international agreements such as the Kunming-Montreal Global Biodiversity Framework (KMGBF) under the Convention on Biological Diversity (CBD).
Biodiversity Credit Alliance:
- Launched during the CoP15 of CBD, the Biodiversity Credit Alliance aims to advocate for biodiversity credits.
- Efforts to promote them included discussions at CoP28 of the UNFCCC in December 2023.
- The alliance seeks to mobilize support and raise awareness among diverse stakeholders, including governments, non-profits, and private enterprises.
Implementation and Initiatives:
Ocean Conservation Commitments (OCCs): Launched in September 2023, OCCs are linked to Niue’s Moana Mahu Marine Protected Area, covering 127,000 square kilometers.
- Available for purchase, OCCs represent commitments to support conservation efforts for 20 years.
- Priced at USD 148 per OCC, attracting investments from entities like the Blue Nature Alliance, Conservation International, and private donors.
Wallacea Trust: A UK-based organization focusing on biodiversity and climate research, making substantial financial commitments equivalent to 5 million biodiversity credits.
- Indicates a notable interest from research-oriented entities in utilizing biodiversity credits for conservation.
Challenges and Uncertainties:
- Despite their potential, the success of biodiversity credits faces uncertainties, including regulatory frameworks, ensuring fair pricing structures, and avoiding corporate interests overshadowing genuine biodiversity conservation.
-Source: The Hindu, Indian Express
