Biodiversity Credits: Demand Drivers and Guidance on Early Use
Two reports that advance the debate on emerging markets for biodiversity credits, published by the World Economic Forum Biodiversity Credits Initiative.
Two reports that advance the debate on emerging markets for biodiversity credits, published by the World Economic Forum Biodiversity Credits Initiative.
The UN's Global Biodiversity Framework (GBF) obliges its 196 state signatories to mobilize at least $200 billion in financing per year by 2030 and encourages countries to leverage “innovative schemes such as…biodiversity offsets and credits”. Since the adoption of the GBF in Montreal in 2022, biodiversity credits have gained unprecedented momentum as one of the instruments that can mobilize additional capital towards biodiversity conservation and restoration.
While the current market for voluntary biodiversity credits is estimated at around $8 million, scaling-up the market will require a clear business case, as well as aligning on common principles of integrity and governance. These two reports capture the current state of the market and provide new information on the key demand drivers and potential uses of the credits by early movers.
1. Biodiversity Credits: Demand Analysis and Market Outlook
With effective progress on governance, global demand for voluntary biodiversity credits could reach $2 billion in 2030 and $69 billion by 2050. While estimates might vary depending on different scenarios, this report identifies the internal and external drivers of demand, including the enabling conditions needed to build trust in these innovative mechanisms.
2. Biodiversity Credits: A Guide to Support Early Use with High Integrity
Improper use of biodiversity credits may harm nature and local communities, as well as exposing buyers to strategic, operational and reputational risks. This report offers initial guidance for companies to take early action with high integrity on biodiversity credits while standards and advice are evolving.