akar.earthBiodiversity credit: Definition
What is a biodiversity credit? How nature credits measure gains in species and habitats, how they differ from carbon credits, and early options in Indonesia.
A biodiversity credit is a certified, tradable unit representing a measured, positive change in biodiversity, such as habitat restored or species populations protected, over a defined area and time. Unlike carbon credits, there is no single global unit; each framework sets its own metric.
Why it matters
Companies face growing pressure to address their impacts on nature, through frameworks such as TNFD and the Kunming-Montreal Global Biodiversity Framework. Biodiversity credits offer a way to fund conservation and restoration with measurable outcomes. For projects, they can add a revenue stream alongside carbon, especially where carbon value is low but nature value is high.
How they are measured
- Choose a metric: often a combination of habitat area and condition, or species-based indicators.
- Set a baseline with field surveys, remote sensing, acoustic monitoring or eDNA.
- Monitor change over time against the baseline or a reference site.
- Have the results verified and credits issued under the framework’s rules.
Frameworks include Plan Vivo’s PV Nature and the Verra Nature Framework. See biodiversity credit methods.
Indonesia and Southeast Asia angle
Indonesia is one of the world’s most biodiverse countries, with forests, peat swamps, mangroves and reefs that host many endemic species. Many forest carbon projects already protect high-value habitat for species such as orangutans, tigers and hornbills. Biodiversity credits could reward that, but the market is still small. Domestic rules on biodiversity credits are not yet as developed as for carbon, so check legal status before selling.
Buyers are still testing the market, often through pilots linked to existing carbon projects. Credible early projects use robust monitoring and clear claims, and accept that prices are still being discovered.
Common mistakes
- Treating biodiversity credits as interchangeable with carbon credits; see biodiversity credits vs carbon credits.
- Using area alone as a proxy for biodiversity.
- Making offset claims the framework does not support.
More on the biodiversity hub.
Frequently asked questions
Can biodiversity credits offset damage elsewhere?
Most voluntary biodiversity credit frameworks are designed for contribution or positive impact claims, not to offset harm elsewhere, because nature is not interchangeable like CO2. Check the rules of each scheme.
Which standards issue biodiversity credits?
Several new frameworks exist, including Plan Vivo's PV Nature and Verra's Nature Framework. The market is young and methods are still evolving.