Unlocking Regenerative Financing
with Nature-Based Credits
Background
The Coalition for Private-sector Investment in Conservation (CPIC) highlighted in 2021 the stark contrast between private sector funding for climate change ($851 billion) and biodiversity conservation ($18 billion in 2020), attributing this disparity to the absence of a standardized method for quantifying biodiversity. In contrast to climate change, where carbon dioxide equivalent serves as a universal metric, biodiversity lacked a similar unit of measurement. Recognizing the need for significant investment, estimated at $600 - $800 billion annually to meet the Global Biodiversity Framework's targets, the private sector's role became evident. The Wallacea Trust responded by assembling a diverse group of over 60 financial institutions, corporations, consultancies, and academics. This collaboration resulted in the early 2022 development of a consensus on a methodology for quantifying biodiversity improvements, now openly available and spearheaded by the Wallacea Trust.
Understanding the Biodiversity Credit
Biodiversity Credits represents a significant step forward, enabling accurate measurement of environmental contributions across all types of living organisms, or Taxa. By adding precision and enriching the realm of environmental and sustainability goals. Companies can now tangibly contribute to biodiversity preservation, enhance their corporate responsibility profiles, and meet regulatory or voluntary environmental commitments with measurable impact. This not only supports global biodiversity but also aligns with consumer expectations for corporate sustainability, offering a competitive edge in eco-conscious markets.
Universal Applicability
The biodiversity credit works everywhere, covering different natural areas around the world. It's flexible and has a worldwide impact.
Measurable
Biodiversity Gains
It measures the positive changes or prevented damage to biodiversity in a clear, understandable way.
Verified by Experts
Its trustworthiness comes from checks by independent scientific peer review panels, making sure it's accurate and transparent.
Modelled After Carbon Credits
It uses the proven model of carbon credit trading, making the trading of biodiversity credits efficient and dependable.
Multi-dimensional Approach
Inspired by the principle behind the Consumer Price Index, the Wallacea Trust introduces a revolutionary approach to biodiversity conservation. Much like the CPI's tailored basket of goods that varies from country to country, the approach involves measuring a unique basket of metrics tailored to the specific conservation objectives of each habitat and ecoregion. This method allows for the collection of baseline data at the onset of a wildlife improvement scheme, followed by a re-evaluation after 3-5 years to assess the changes. Each metric, represented by a percentage change value, contributes to a median value that encapsulates the overall improvement in biodiversity at the site. This innovative approach brings a new level of precision and customisation to biodiversity conservation, effectively mirroring the real-world dynamics of ecological systems.
