Bio Credits – Biodiversity credits

There is an urgent need to regulate frameworks to ensure the effective implementation of biodiversity credits.

Kunming-Montreal Global Biodiversity Framework (KMGBF)

Aim - KMGBF aims to catalyze transformative action by governments, and subnational and local authorities, with the involvement of all of society, to halt and reverse biodiversity loss.

• Adoption - KMGBF was adopted in 2022 at the 15th Conference of Parties (CoP15) of Convention on Biological Diversity (CBD).
• Financing work - Biodiversity credits are increasingly being pushed as a means for financing work on the various targets set under the Kunming-Montreal Global Biodiversity Framework (KMGBF).

Biodiversity Credits

• Biodiversity credit is a financial mechanism, which represents an asset created through investments in the restoration, conservation, and development of biodiversity in a specific landscape.

Biocredits are similar to carbon credits used to control greenhouse gas emissions.

• Biocredits are not designed to offset or compensate for actions with negative impacts on biodiversity.
• Instead, proceeds from the sale of biocredits are used to protect and restore biodiversity where it exists.
• To promote biocredits, the biodiversity credit alliance was also launched at CoP15.

Biodiversity Credit Alliance (BCA)

• BCA provides guidance for the establishment of a credible and scalable market that stands up to the scrutiny of multiple stakeholders.
• BCA is working together with the Indigenous Peoples and Local Communities to ensure strong foundations and principles exist and can be applied by all market participants going forward. 
• BCA was launched during the COP 15 with the support from UNDP, the United Nations Environment Programme Finance Initiative (UNEP FI) and the Swedish International Development Cooperation Agency (SIDCA).
• BCA is a voluntary international alliance that brings together diverse stakeholders to support the realization of the Global Biodiversity Framework.

Implementation and Initiatives:

Ocean Conservation Commitments (OCCs): Launched in September 2023, OCCs are tied to Niue's Moana Mahu Marine Protected Area, covering 127,000 square kilometers.

• • OCCs are available for purchase by interested buyers, each representing a commitment to support conservation efforts for 20 years.
  • Priced at USD 148 per OCC, these commitments have attracted investments from non-governmental organizations like the Blue Nature Alliance, Conservation International, and private donors.

Wallacea Trust: This UK-based organization focused on biodiversity and climate research has made substantial financial commitments, amounting to 5 million biodiversity credits. Their engagement signals a significant interest from research-oriented entities in utilizing biodiversity credits to support conservation efforts.

National Plan for Conservation of Aquatic Ecosystems (NPCA)

• NPCA is a single conservation programme for both wetlands and lakes.
• It is a centrally sponsored scheme, currently being implemented by the Union Ministry of Environment and Forests (MoEF).
  • It was formulated in 2015 by merging of the National Lake Conservation Plan and the National Wetlands Conservation Programme.
• NPCA seeks to promote better synergy and avoid overlap of administrative functions.