Biodiversity provides critical ecosystem services such as pollination, carbon storage and water purification, contributing an estimated USD $125–140 trillion to the global economy annually. Despite this, biodiversity loss and climate change continue to intensify. Nature-based solutions, such as wildlife corridors, cover cropping, natural water retention measures, and buffer strips, may help address these challenges. Yet they receive little financing. This chapter explores the potential of biodiversity offsets and credits to fund nature-based solutions. It focuses on their integration with financial instruments such as sustainability-linked bonds, debt-for-nature swaps, and payment for ecosystem services. It advocates for a “net gain” approach to biodiversity, requiring offset ratios to far exceed the commonly used 1:1 ratio to reverse biodiversity loss and restore ecosystem health. Key recommendations include moving beyond single-species metrics, engaging Indigenous and local communities and enforcing strict monitoring and governance. While not a panacea, biodiversity offsets and credits can play a role in advancing the financing of nature-based solutions.

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The Potential of Biodiversity Offsets and Credits to Finance Nature-Based Solutions

  • Diane-Laure Arjaliès,
  • Julie Bernard,
  • Diya Patel

摘要

Biodiversity provides critical ecosystem services such as pollination, carbon storage and water purification, contributing an estimated USD $125–140 trillion to the global economy annually. Despite this, biodiversity loss and climate change continue to intensify. Nature-based solutions, such as wildlife corridors, cover cropping, natural water retention measures, and buffer strips, may help address these challenges. Yet they receive little financing. This chapter explores the potential of biodiversity offsets and credits to fund nature-based solutions. It focuses on their integration with financial instruments such as sustainability-linked bonds, debt-for-nature swaps, and payment for ecosystem services. It advocates for a “net gain” approach to biodiversity, requiring offset ratios to far exceed the commonly used 1:1 ratio to reverse biodiversity loss and restore ecosystem health. Key recommendations include moving beyond single-species metrics, engaging Indigenous and local communities and enforcing strict monitoring and governance. While not a panacea, biodiversity offsets and credits can play a role in advancing the financing of nature-based solutions.