Framework for high integrity biodiversity credit markets

The Kunming-Montreal Global Biodiversity Framework (GBF) highlights the critical importance of aligning global finance flows and economic activities with international biodiversity goals. One of several financing mechanisms identified by the GBF as a source of funding Nature, including forest ecosystems, was biodiversity credits. Building on the momentum of the GBF, at the Paris Summit for a new financing pact in June 2023, the British and French governments launched the International Advisory Panel on Biodiversity Credits (IAPB), a global initiative with the aim of facilitating the creation and growth of high integrity biodiversity credit markets.

While the development of any market is an iterative process over many years, the IAPB Framework aims to create solid foundations for the development and growth of high integrity biodiversity credit markets that deliver on the three-fold objectives of channeling funds into biodiversity, shifting business towards Nature-positive behavior and securing fair rewards for Nature’s stewards.

The Framework consists of High-Level Principles, guidance and pilots. The principles are supported by detailed guidance on market development and technical design informed by our work on measurement, demand, supply, stewardship and governance. It seeks to be clear and practical, but it will not translate into outcomes overnight. There is a critical need for testing and showcasing the High-Level Principles and guidance on the ground through concrete action. That is the reason why the Framework is accompanied by 31 pilots across 21 countries which have been or will be developed, showing the willingness of public and private actors to test the Framework and help improve it in the future.

The International Advisory Panel on Biodiversity Credits (IAPB) is made up of more than 25 senior representatives from finance, business, academia non-governmental organizations, and Indigenous Peoples and local communities.