Are some biodiversity credits more equal than others? With over 50 standards & methodologies, it is becoming increasingly important to sort credits by integrity and type. ? ? ? Corporate buyers usually wonder: where will the credits sit within my overall biodiversity strategy? How will they compare to my negative & other positive biodiversity impacts? Unfortunately, at this stage, existing frameworks do not really mention biodiversity credits. Answers can nonetheless be found by looking at what the credit units actually represent. ? ? ?? Ingredients, recipe, dishes Let’s start with a reminder of a biodiversity credits “life cycle”: ? 1st a project developer registers potential credits based on planned restoration or conservation activities. Depending on the standard, a number of indicators (“ingredients”) are used to calculate (through the “recipe”) the number of potential credit units (“dishes”, what the credit buyers purchase). ? Then as the activities are implemented, milestones are achieved and credits are issued to the buyers. ? This post focuses on the ingredients involved in potential credit calculation. ? ? ? 3 types of dishes With Simas Gradeckas (Bloom Labs), my team at The Biodiversity Footprint Intelligence Company (BioInt) tried to provide a meaningful typology to help potential buyers. We started from the ingredients used by each scheme, classified across 3 categories (circles on the chart): - Ecosystem condition - EC (or health): e.g. species abundance, deadwood volume, … - Species, e.g. individual counts - Other, in particular pressures, e.g. land occupation ?? The combination of ingredients leads to 3 potential dishes: ? 1?? Condition-adjusted area: EC indicators only The number of credits registered is directly proportional to the extent x condition restored or conserved. These “pure” credits are more tangible: generating twice the number of credits means the extent restored is twice as large, the condition is improved twice as much or a combination of both. EC is also an indicator listed in ESRS E4, GRI’s Biodiversity standard, the TNFD or the SBTN. ? 2?? Species weighted ecosystem extent: species indicators only Also includes “pure” credits directly proportional to the extent x species, more tangible, and relates to existing frameworks. ? 3?? Weighted ecosystem extent: any combination of categories or other ingredients Conversely, dishes made with “Other” indicators or involving both species & EC indicators are not directly proportional to any single biodiversity component. They are less tangible, but may better capture aspects judged important (e.g. “social engagement”). ? ? In my opinion, schemes in the middle of the chart are not necessarily superior. Instead, the top right and left edge ones are simpler and more tangible, more aligned with potential corporate buyer needs. ?? Are you tired of this cooking analogy just yet? Because I still have a few posts left on this! ??
I have heard some people complain that this diversity is a problem. It will confuse the market (if/when it comes). Personally I see it as an opportunity. Diversity of credit types suits a diversity of buyer needs. Carbon credits are basically only bought for one reason - dealing with unmitigated emissions, biodiversity credits (hopefully) will be bought for a range of reasons, requiring a range of credits. [I tried to think of a baking analogy here, but it's early and I haven't had my cake yet]
I know we want this and other species and people need/want this but do corporations actually want this? I can’t help but think we are building a Field of Dreams where the players don’t show up or only a few do.
I know I’m a broken record on this, but a great example of a successful biodiversity credit approach can be found in the great state of California. It’s not perfect, but it does provide those with unavoidable impacts from development an efficient way to comply with laws, and those looking to invest in nature with appropriate incentives to do so. https://wildlife.ca.gov/Conservation/Planning/Banking
It is already a fine dining restaurant :)
Love this analogy - brining credits understanding to the masses. Great work Josh and Simas
An interesting overview highlighting the current messy situation. Am wondering how it can be simplified or, indeed, if it ever can. Is the idea itself viable?
Never getting tired of this analogy! Perfect way to explain something that is a bit more complex as the biodiversity credit calculation Joshua Berger.
Thank you Joshua Berger for getting this thread going. We will cover some of this in our discussion this Thursday. All are welcome to particpate. https://us02web.zoom.us/webinar/register/WN_1aMSUpkYSEip8gS7t7m4VA#/registration
CEO de BioInt | Transformer la mesure des impacts & dépendances | Faciliter des actions pragmatiques & fondées sur la science | The Biodiversity Footprint Intelligence Company | Les opinions exprimées sont les miennes
2 个月Original article by Simas Gradeckas and I: https://sgradeckas.substack.com/p/biodiversity-credit-calculation-overview-3b9 Biodiversity credit “ingredients” database: https://bloomlabs.earth/metrics Previous posts delving further into the content of the article: - introduction by Simas (with the same diagram without the dish categories displayed): https://www.dhirubhai.net/feed/update/urn:li:activity:7224023814160973824/ - the cooking analogy, by Simas: https://www.dhirubhai.net/feed/update/urn:li:activity:7226137140596756482/ - the typology of metrics & indicators, by myself: https://www.dhirubhai.net/feed/update/urn:li:activity:7225032584781537281/ - comments of Simas on the 13 recipes: https://www.dhirubhai.net/posts/simas-gradeckas_step-by-step-biodiversity-credit-calculation-activity-7229748178139402241-kXbP - the 13 recipes in a slide deck + explanations, by myself: https://www.dhirubhai.net/feed/update/urn:li:activity:7237716173339922432/ ? Thanks to Giada Lampitelli for the help on this piece with Simas, and in particular for the updated layout of the Venn diagram to show the dish categories.