Why in the news? Source: DTE

Biodiversity credits, also known as biocredits, are increasingly being promoted as a means of financing the work on the different targets established under the Kunming-Montreal Global Biodiversity Framework (KMGBF).

What is the KMGBF? The KMGBF, formed at the CBD’s 15th Conference of Parties (CoP15), establishes ambitious aims for biodiversity conservation, sustainable exploitation, and equitable benefit sharing.

What is biodiversity credit?

• Biodiversity credits are a financial instrument designed to generate funding for the conservation, restoration, and sustainable use of biodiversity-rich areas. It is similar to carbon credits, but with a distinct focus on biodiversity preservation rather than offsetting negative impacts.
• Objective: The primary goal of biodiversity credits is to attract private investment in programs that are aligned with the goals of biodiversity conservation and restoration as specified by international accords such as the KMGBF under the CBD.
• What is Biodiversity Credit Alliance:
  • To promote Bio credits, the Biodiversity Credit Alliance was launched at CoP15 of CBD.
  • Efforts were undertaken to promote them at various forums until 2023. They had been discussed at the UNFCCC CoP28 meeting in Dubai in December 2023.
  • Its goal is to develop support and raise awareness among many stakeholders, including government agencies, non-profit organizations, and private businesses.
• 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.
    • Interested customers can acquire OCCs, which reflect a 20-year commitment to support conservation initiatives.
    • 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: It is a UK-based organization focused on biodiversity and climate research that 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.
• What are Challenges and Uncertainties of Biocredits:
  • Despite their potential benefits, biodiversity credits face challenges and criticism, and the success of biodiversity credits remains uncertain. Challenges such as regulatory frameworks, pricing structures that ensure fairness for both buyers and sellers, and ensuring that these processes support biodiversity conservation rather than corporate interests.

Other Initiatives Related to Biodiversity Conservation Include

By India India Business & Biodiversity Initiative (IBBI) Wetland (Conservation and Management) Rules 2010 Wildlife Crime Control Bureau Biological Diversity Act, 2002 Green India Mission (GIM) Eco-Sensitive Zones (ESZs) Integrated Development of Wildlife Habitats (IDWH) National Plan for Conservation of Aquatic Ecosystem

Globally Nagoya Protocol Convention on International Trade in Endangered Species of Wild Fauna and Flora World Wide Fund for Nature National Biodiversity Strategies and Action Plans (NBSAPs) Global Partnership for Plant Conservation (GPPC): Zero Net Deforestation Pledges: Global Environment Facility (GEF): Red List of Threatened Species Convention on Biological Diversity (CBD)

Way Forward

The notion of biodiversity credits holds potential for bridging the funding gap identified in the KMGBF for biodiversity protection. However, crucial concerns such as regulation, true conservation impact, and connection with biodiversity goals highlight the importance of careful and precise implementation.

It is critical to determine how they should be governed and monitored as soon as possible. It must be assured that pricing is equitable for both vendors and customers.

The governments of the United Kingdom and France are paving the way for a high-integrity biodiversity credits market.

This will be difficult given that the majority of biocredit proponents are from the commercial sector and are inclined to safeguard the interests of the firms driving the biodiversity catastrophe rather than biodiversity.

Conclusion

Biodiversity credits contribute to a broader portfolio of conservation strategies as the globe grapples with rising biodiversity loss and the attendant concerns to ecosystem services. Their success is dependent on government, business, local communities, and environmental stakeholders working together. Biodiversity credits have the potential to play a critical role in encouraging a more sustainable and harmonious cohabitation between human activities and the natural environment with continued research, transparent governance, and adaptive management.

UPSC Civil Services Examination, Previous Year Questions (PYQs) Q. Consider the following statements : (2023) 1. In India, the Biodiversity Management Committees are key to the realization of the objectives of the Nagoya Protocol. 2. The Biodiversity Management Committees have important functions in determining access and benefit sharing, including the power to levy collection fees on the access of biological resources within its jurisdiction. Which of the statements given above is/are correct? (a) 1 only  (b) 2 only (c) Both 1 and 2  (d) Neither 1 nor 2 Ans: (c)