Co-creating and applying a theory of change for biodiversity credits – towards a nature-positive future

The interest in private investment in biodiversity, triggered by new regulatory and reporting requirements for biodiversity net gain and a nature positive future, has been growing. Nevertheless, there is a lack of appropriate biodiversity finance tools. Hence, the main aim of the project is to deliver integration between the financial sector and biodiversity by adapting and implementing the innovations that are developing with current UKRI-funded projects on the ‘economics of biodiversity’. These innovations started with developing a method to quantify biodiversity that is appropriate for use in biodiversity valuation and trading, and thus in biodiversity credit standards.

To expand the practices around the topic, the project will aim to develop tools and best-practice guidelines for landowners and stewards to use when developing biodiversity projects for which biodiversity credits are sought, assessors of biodiversity change (e.g. consultancies or universities) to consider when measuring biodiversity on behalf of either the landowners or the finance industry, the finance industry to use when assessing applications for biodiversity credits, and investors to use when looking to invest in biodiversity.

Ultimately, it seeks to deliver a framework for tradable biodiversity credits, developed by UK science in partnership with industry, to allow the release of private finance for biodiversity conservation nationally and globally. This is necessary if the $600-800 billion a year funding shortfall identified by the Global Biodiversity Framework, relative to what is needed to meet the targets for slowing extinction rates, is hoped to met.