Recent publication on biocredits to finance nature and people

The International Institute for Environment and Development (IEED), with the support of the United Nations Development Programme (UNDP), Irish Aid and Sida (Sweden), developed a paper on biocredits as an instrument to finance nature and people. The paper summarizes the characteristics of emerging biocredit schemes, and discusses how to address the challenges developers face when designing those schemes.

After precisely defining biocredits and their differences with carbon credits and biodiversity offsets, the paper describes the three current challenges in designing and executing an effective biocredit market. The authors also analyze some of the most advanced existing biocredit schemes, namely Terrasos, ValueNature and the Wallacea Trust methodology.

Finally, the authors summarize their findings in three main recommendations: 1) to move beyond technocratic definitions of biocredits; 2) to focus more on generating biocredit sales whilst avoiding greenwashing; and 3) to ensure that benefits from biocredit transactions flow to Indigenous Peoples (IPs) and Local Communities (LCs).

The paper positions biocredits as a credible option for delivering on international and national biodiversity frameworks and plans, such as the post-2020 Global Biodiversity Framework under the UN Convention on Biological Diversity.