Resource description:
Biodiversity remains under continuous long-term decline, and a significant funding gap estimated at USD 700 to 900 billion per year is limiting efforts to reverse this trend. Biodiversity credits have emerged as one potential mechanism to mobilise private finance by providing compensation for measurable and additional biodiversity gains, both through their protection (“avoided loss”) and restoration (“uplift”).
EFI's new Policy Brief looks at the four critical challenges of commensurability, baselines and additionality, permanence and leakage, and governance and integrity. The brief also addresses what key decision-makers, such as policymakers, corporate decision-makers, bankers and researchers can do in response to the challenges.
Author/Contact:
Wunder, S. and Fraccaroli, C. 2025. Biodiversity credits: How to ensure their integrity and impact? Policy Brief 13. European Forest Institute. https://doi.org/10.36333/pb13