FRAMEWORK

The IAPB Framework for high integrity biodiversity credit markets was launched on 28 October at COP16 in Cali, Colombia.

WHAT IS THE FRAMEWORK FOR HIGH INTEGRITY CREDIT MARKETS?

IAPB has established a Framework to define, guide and encourage the development of high integrity biodiversity credits and credit markets. The success of these markets depends on the active alignment of buyers and sellers at the level of individual credits and projects, and support from government, private and public finance, and validation and verification bodies to create an enabling environment. This Framework provides guidance for these market actors at both project and market level. In doing so, it provides clarity on the critical policy issues at the heart of biodiversity credit markets and offers examples of good practice from around the world.

WHAT DOES IT INCLUDE?

The Framework is made up of a set of High-Level Principles which serves as an overarching guide for biodiversity credit markets, and more detailed recommendations and guidance for market actors. The High-Level Principles, co-developed with the Biodiversity Credit Alliance (BCA) and the World Economic Forum (WEF), are focused on ensuring high integrity while considering the practical concerns and costs of implementation. The guidance draws from across IAPB’s work, particularly from the five Working Groups focused on Measurement, Demand, Supply, Stewardship and Governance (working papers available from our Resources page). The Framework also includes a suite of pilot projects, showing how biodiversity credit approaches are being translated into concrete action.

KEY MESSAGES

It is feasible for high integrity biodiversity credits and credit markets to develop at scale and pace. It will require action on the part of multiple actors. In particular, governments need strong policy directives or regulatory mechanisms to unlock finance that delivers for Nature and its stewards.

High integrity means verified outcomes for Nature, equity and fairness for people, and good governance for markets. High integrity at all levels is a prerequisite for scale, not a barrier to it.

The important role of Nature’s stewards is clear. Indigenous Peoples and local communities should be co-creators of projects and markets and included in all aspects of design and delivery.

A biodiversity credit is “a certificate that represents a measured and evidence‐based unit of positive biodiversity outcome that is durable and additional to what would have otherwise occurred” (BCA, 2024). IAPB’s work builds on this definition, including conservation and restoration outcomes, to examine some aspects in greater depth and to set the necessary criteria to secure the integrity of biodiversity credits and markets.

Biodiversity credits can be used for:

IAPB does not support international biodiversity offsetting approaches: compensation must be local-to-local and like-for-like. In addition to these use cases, there are linkages between carbon and biodiversity markets and potential for co-benefits between them.

At this stage, there will be multiple markets for biodiversity credits, and markets will follow a project financing approach. Biodiversity is not fungible, so a standardised biodiversity unit is not appropriate (though standardisation of approaches could support market development).

Design solutions therefore need to support multiple markets, depending on the context, actors and motivations. It should be noted, however, that IAPB does not support secondary markets at this stage.

Ambitious and urgent collective leadership, from all market actors, is needed to scale up biodiversity credit markets at pace.