Climate Finance
Biodiversity credit
A tradable unit representing a measured gain in biodiversity, distinct from carbon but often generated alongside it.
Biodiversity credits reward measurable improvements in habitat condition, species populations or ecosystem integrity. Unlike carbon, there is no single common unit, so metrics are scheme-specific.
The attraction is that it prices nature outcomes directly rather than as a co-benefit of carbon. The challenge is comparability and verification, since ecological measurement is costly and locally variable.
Frequently asked questions
Can the same land generate carbon and biodiversity credits?
Yes, and stacking rules must be explicit to avoid paying twice for one outcome.
Is there a global standard?
Several frameworks are emerging, but none is yet universal.