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Pricing Nature: Can ‘Biodiversity Credits’ Propel Global Conservation?

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece Yale Environment or enjoy below

🗞️ Driving the news: In 2009, David Dorr, a global macro trader based in the Cayman Islands, was intrigued by the idea of putting a price on nature amid global financial turmoil
• Today, Dorr's vision of pricing nature's inherent value is becoming increasingly popular, with scientists, conservationists, and policymakers worldwide working to develop what they call biodiversity credits

🔭 The context: Dorr was aware of carbon credit schemes that offset emissions by financing carbon storage or removal
• Yet, he sought a broader solution to appraise nature beyond its extractive uses or ecosystem services
To achieve this, the concept of biodiversity credits, assigning economic value to ecosystem preservation or restoration, is now being developed

🌎 Why does it matter for the planet: Biodiversity credits could provide a funding mechanism for conservation efforts on an unprecedented scale
• The World Economic Forum estimates that stopping the current global loss of biodiversity could cost as much as $1 trillion annually, while less than $150 billion is spent on such efforts each year

⏭️ What's next: Several companies are currently developing and selling biodiversity credits, with major players in the carbon credit industry also getting involved
• While still nascent, the biodiversity credit industry faces skepticism and challenges, such as demonstrating that money spent on credits actually delivers the desired environmental benefits

💬 One quote: "We only get paid when we deliver the performance outcomes," (Mariana Sarmiento, CEO of Terrasos)

📈 One stat: Terrasos, one of the pioneering companies in the biodiversity credits market, has sold slightly more than 100 of its 62,000 12-square-yard plots of conserved or restored ecosystems at around 30 euros per unit, all of which will be managed for 30 years

Click for more news covering the latest on carbon

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