Biodiversity Credit Market

The voluntary biodiversity credit market is a growing mechanism to fund conservation efforts by involving private investment. Biodiversity credits measure ecosystem improvements against a baseline scenario and aim to channel funds for ecosystem restoration. Valued at million currently, the market is projected to grow significantly by 2030, driven by frameworks like the Kunming-Montreal Global Biodiversity Framework. However, issues like inadequate standardisation, leakage of harmful practices, and difficulties in assessing “additionality” raise concerns. Improved regulation, monitoring, and stakeholder participation are crucial for enhancing the market’s effectiveness.