Biodiversity credits
Topic: Environment and Sustainable Development · NCERT: Beyond NCERT
Meaning
Biodiversity credits are tradable units. Each one stands for a measured gain in biodiversity, such as a restored habitat or a rise in species numbers. "Tradable" means they can be bought and sold. Buyers pay for these units, and the money goes to conservation. The idea is to make protecting nature earn income, in the same way carbon markets reward cutting emissions.
Example
Suppose a community restores a degraded wetland, and bird and fish populations are shown to rise. The measured gain can be issued as biodiversity credits. A company that wants to support nature can buy them, and the money pays for the community's conservation work.
Don't confuse with
- Biodiversity offset: an offset makes up for a specific loss caused by a project. A biodiversity credit rewards a measured gain and need not be linked to any damage.
- Carbon credit: one carbon credit equals 1 tonne of CO2-equivalent reduced or removed. Biodiversity credits measure nature, not carbon.
Related concepts
- Chipko and Appiko movements
- Development-induced displacement
- Environmental impact assessment
- Compensatory afforestation
- Net present value of forests
- Green credit
- Biodiversity offset
- REDD+
- Nature-based solutions
- Polluter pays principle