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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
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