Freek van Til’s Post

🌍 Can biodiversity credits drive global restoration efforts? The creation of the International Advisory Panel on Biodiversity Credits (IAPB) is a major milestone, expanding perspectives and mobilizing a broad coalition of countries beyond the initial Franco-British framework. The recent #COP16 in Cali demonstrated the growing global interest in this collective effort. The framework established by the IAPB brings crucial international recognition. It defines what a high-quality biodiversity credit should look like. It builds on efforts and contributions from many stakeholders including World Economic Forum and Biodiversity Credit Alliance. It is however only a first step. We now need to address the challenge of market structuring. The demand side is key: the involvement of large companies is essential. I am also convinced that, by often treating carbon and biodiversity credits separately, we are missing an opportunity to promote a « nature credit » model that combines both, as companies are only beginning to grapple with the complexities of carbon credits. The example of the Green Bonds Principles, which have successfully structured a market, offers a compelling model for the next phase of the IAPB's work. #BiodiversityCredits #GreenTransition #SustainableFinance #GreenInnovation #ClimateGoals Sylvie Goulard Dame Amelia Fawcett DBE, CVO David Vaillant Read the #IAPB framework 👉🏼 https://lnkd.in/e_Wky7xf

This year’s UN Biodiversity Conference 𝗖𝗢𝗣𝟭𝟲 emphasizes the 𝗰𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗲 𝗯𝗶𝗼𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝘁𝘆 𝘄𝗶𝘁𝗵𝗶𝗻 𝗴𝗹𝗼𝗯𝗮𝗹 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗲𝗳𝗳𝗼𝗿𝘁𝘀. However, the conference ended without reaching a new consensus on pivotal issues, such as funding for biodiversity initiatives and mechanisms for tracking progress toward key targets. Notably, only 22% of the 196 participating countries introduced new biodiversity action plans. But new incentives and action plans could help to enhance transparent reporting on biodiversity. This 𝗹𝗮𝗰𝗸 𝗼𝗳 𝗮 𝗰𝗹𝗲𝗮𝗿 𝗽𝗮𝘁𝗵 𝗳𝗼𝗿𝘄𝗮𝗿𝗱 is unfortunately mirrored in our GEM 2024 sample. Here are four key points you should know about biodiversity reporting: 𝟭. 𝗕𝗶𝗼𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝘁𝘆 𝗶𝘀𝗻’𝘁 𝗶𝗻 𝗳𝗼𝗰𝘂𝘀 𝘆𝗲𝘁: Only a meagre 54 out of 194 companies (28%) identified the topic Biodiversity & Ecosystems as material. 𝟮. 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 𝗻𝗲𝗲𝗱𝘀 𝘁𝗼 𝗶𝗺𝗽𝗿𝗼𝘃𝗲: The average reporting score was 31%. 𝟯. 𝗚𝗲𝗻𝗲𝗿𝗮𝗹 𝗳𝗼𝗰𝘂𝘀 𝗼𝗻 𝗶𝗺𝗽𝗮𝗰𝘁𝘀: 80% of the companies that identified Biodiversity as material describe actions taken to mitigate impacts. 78% report on how they affect biodiversity and ecosystems. But most don’t go into more detail. 𝟰. 𝗠𝗼𝗿𝗲 𝗾𝘂𝗮𝗻𝘁𝗶𝘁𝗮𝘁𝗶𝘃𝗲 𝗱𝗮𝘁𝗮 𝗻𝗲𝗲𝗱𝗲𝗱: Only 6% of the 54 companies provide quantitative information on potential financial effects of risks and opportunities arising from biodiversity-related impacts and dependencies. Get in touch if you want to learn more about the GEM 2024 results and about how you can 𝗶𝗺𝗽𝗿𝗼𝘃𝗲 𝘆𝗼𝘂𝗿 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴. #COP16 #BiodiversityConference #Cali #SustainabilityReporting #Nachhaltigkeitsreporting #GEM #GlobalESGMonitor

Ninety One has launched a Sovereign Biodiversity index, providing a quantitative way for investors to assess nature and biodiversity risks at a national level https://lnkd.in/ebyNbdTm #biodiversity #sustainableinvestments #index

Lim Li Ching, a senior researcher at the Third World Network (TWN), said: “For us, the central issue is that it really is a dangerous distraction, because we’re not actually focusing on the real causes of biodiversity loss.” Sophus zu Ermgassen, an ecological economist from Oxford University and co-author of the first academic review of nature credits, said: “Without a driver of demand, there are likely to be very few buyers of voluntary biodiversity credits. So my main concern about biodiversity credits is not that they’re harmful – they can’t do much harm if not many people buy them. My main concern is the way they steal the political discourse and political capital away from more important and impactful solutions.” Definitely agree here. #biodiversity #biodiversitycredits #biodiversitycrisis #biodiversityoffsetting #cop16 https://lnkd.in/eGmAMc65.theguardian.com%2Fenvironment%2F2024%2Fnov%2F11%2Fbiodiversity-credits-framework-cop16-rules-out-global-offsetting-aoe&utm_campaign=aga&utm_source=agsadl2%2Csh%2Fx%2Fgs%2Fm2%2F4

Biodiversity credit markets are opening up new ways to fund conservation efforts by letting companies invest directly in ecosystem protection. This innovative approach holds great potential yet comes with challenges—how do we define biodiversity credits? How do we ensure that investments lead to real conservation gains? These questions were front and center at #COP16, where leaders and experts explored the path forward. As we seek sustainable, effective solutions for protecting nature, biodiversity credits may be a powerful tool—if developed with clear standards and accountability. #COP16 #Biodiversity #ConservationFinance #SustainableDevelopment https://lnkd.in/eseKi8YN

Exciting times for the biodiversity credit market! Businesses, conservationists, and investors are exploring this new frontier in nature protection funding. With ongoing developments and global interest, this market could revolutionize conservation efforts. Read more: https://lnkd.in/gpt4tuHV #Biodiversity #Conservation #Sustainability #GreenFinance #NatureProtection #BiodiversityCredits #EnvironmentalImpact #SustainableInvestment #COP15 #FutureOfFinance

"Delivery of no net loss or net gain through biodiversity trading is thus administratively improbable and technically unrealistic. Their proliferation without credible solutions suggests biodiversity offset programs are successful “symbolic policies,” potentially obscuring biodiversity loss and dissipating impetus for action." This was written in 2009. Scientists have been very clear, for a long time, that trading "biodiversity offsets", "biodiversity credits", "nature credits" or whatever creation comes out of the brain of the lobbyists pushing for them, cannot work for protecting nature (ecosystems are too complex, not completely known, and not interchangeable). It might work well, however, for polluters enjoying a preserved right to kill, finance professionals trading a new asset class, producers of voluntary certification schemes... all parties who might profit from this back-in-fashion crookery. https://lnkd.in/eHAaSV3s

In light of Earth Day 2024, the BNP Paribas AM Environmental Strategies Group have written a think piece on biodiversity in listed equities to help answer common questions from clients. The team believe that biodiversity is greatly threatened by human activities and multiple billions of dollars need to be mobilized to reverse biodiversity loss. However, investors should be mindful of the challenges of investing in this space – please click on the link below to explore further. https://lnkd.in/ebYEQQac #environmentalstrategiesgroup #biodiversity #ecosystemrestoration Edward Lees Ulrik Fugmann

Unlike in the carbon market, there is a difference between biodiversity credits and offsets. In the biodiversity market, biodiversity credits are “nature-positive”, meaning that companies pay for contributions to protecting nature without necessarily compensating for harmful impacts from their own supply chains. They get a reputational benefit in exchange, such as being able to brand their products as biodiversity-friendly.