Biodiversity credits, also known as biocredits, have become a popular financial instrument for financing work on various targets under the KMGBF. The Framework was established at the 15th Conference of Parties (CoP15) of the Convention on Biological Diversity (CBD), with ambitious targets for biodiversity conservation, sustainable utilization, and equitable benefit sharing.
What Are Biodiversity Credits?
Biodiversity credits function as a financial tool for generating funding for the conservation, restoration, and sustainable use of areas rich in biodiversity. They operate similarly to carbon credits but focus on preserving biodiversity rather than offsetting negative impacts. Their primary aim is to attract private investments towards initiatives aligned with conserving and restoring biodiversity, guided by international agreements such as the KMGBF under the CBD.
The Role of Biodiversity Credit Alliance
To promote biocredits, the Biodiversity Credit Alliance was launched at CoP15 of CBD. Through 2023, numerous efforts have been made to advocate these credits at different fora. These include discussions held at CoP28 of the UNFCCC in Dubai in December 2023. The goal of the Alliance is to raise awareness and support from stakeholders such as governmental bodies, non-profits, and private companies.
Initiatives Implementing Biodiversity Credits
Several initiatives are adopting the biodiversity credit approach. For example, the Ocean Conservation Commitments (OCCs), which were launched in September 2023, are associated with Niue’s Moana Mahu Marine Protected Area, which spans 127,000 square kilometers. Each OCC, priced at USD 148, represents a commitment to support conservation efforts for 20 years. In addition, the Wallacea Trust, a UK-based organization concentrating on biodiversity and climate research, has committed substantial financial resources, indicating the interest from research entities in utilizing biodiversity credits.
Challenges and Uncertainties Involved
Despite their potential, the success of biodiversity credits remains uncertain. Challenges include establishing regulatory frameworks, ensuring fair pricing structures for both buyers and sellers, and making sure these mechanisms genuinely serve biodiversity conservation rather than corporate interests.
Initiatives Related to Biodiversity Conservation
Several initiatives globally and in India are focusing on biodiversity conservation. These include the India Business & Biodiversity Initiative (IBBI), Wetland (Conservation and Management) Rules 2010, National Plan for Conservation of Aquatic Ecosystem, Wildlife Crime Control Bureau, Biological Diversity Act, 2002, Nagoya Protocol, Convention on International Trade in Endangered Species of Wild Fauna and Flora, and the World Wildlife Fund for Nature.
The Way Forward with Biodiversity Credits
The concept of biodiversity credits offers a promising solution to the financial gap needed for biodiversity protection outlined in the KMGBF. However, careful consideration about regulation, genuine conservation impact, and alignment with biodiversity goals is needed for cautious and meticulous implementation. Governments like those of the United Kingdom and France are leading the way in creating a roadmap for a high-integrity biodiversity credits market. This presents a challenge as most proponents of biocredits are from the private sector, who are likely prioritizing the interests of the corporations driving the biodiversity crisis over biodiversity itself.
Examining the UPSC Civil Services Examination: Previous Year Questions (PYQs)
An example question from the 2023 UPSC Civil Services Examination focused on the role of Biodiversity Management Committees in India. It highlighted how these committees contribute to the objectives of the Nagoya Protocol, helping ensure the commercial and research utilization of genetic resources leads to benefit sharing with the government and communities preserving such resources. The committees play a crucial role in preparing People’s Biodiversity Register (PBR) in consultation with local people and regulating access to the biological resources and associated Traditional Knowledge, among other responsibilities. They also have the authority to levy collection fees on accessing biological resources for commercial purposes within their jurisdiction.
