Biodiversity Credit Markets: The role of law, regulation and policy

This paper explores the development of biodiversity credit markets, highlighting the importance of a robust governance framework supported by laws, policies, and regulations. It examines current initiatives in both the public and private sectors and offers principles and recommendations for scalable, high-integrity markets.




  • Financial gap: current conservation spending is $124-$143 billion annually, with a $598-$824 billion gap needed to address global biodiversity loss.
  • Case studies: examples from New Zealand, Colombia, Australia, and others showcase current initiatives.
  • International frameworks: the Kunming-Montreal Global Biodiversity Framework highlights the importance of biodiversity credits for financial mobilization, emphasizing the need for standardized rules and safeguards for Indigenous and local communities.
  • Financial assets and legal enablers: identifies legal mechanisms to enhance private sector investment, such as natural capital accounting and risk disclosure.
  • Governance framework: stresses the need for stakeholder engagement to build a governance framework that ensures market integrity and confidence.
  • Principles and recommendations: proposes five key principles for achieving high-integrity outcomes in biodiversity credit markets.


Publisher: Nature Finance

Year: 2023

Ecosystem(s): Agricultural Land

Location(s): Australia, Latin America, New Zealand, Oceania

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