Evaluating the Biodiversity Implications of Nature-Based Carbon Credits

Biodiversity loss and climate change are two of the greatest challenges our global environment faces today (Portner et al., 2023). Effective carbon credits can enable individuals and corporations to reduce their carbon footprints and mitigate their contributions to climate change. While companies globally are striving to decrease their carbon emissions, they are also seeking to meet international biodiversity conservation targets. This occurs partially through the purchase of biodiversity credits as well as through other conservation measures. Some carbon projects can support biodiversity conservation without expressly producing a biodiversity credit. Carbon credits from biodiversity-supporting projects may appeal to credit buyers striving to meet their company’s biodiversity targets.

In this study, we identified metrics of analysis that assess the biodiversity co-benefits of nature-based carbon credit projects through a targeted literature review. We then created a framework of analysis that evaluates aspects of carbon credit projects’ location and design by selecting eight project location metrics and 10 project design metrics that are suited to analyze these biodiversity co-benefits. Finally, we applied this framework to five case study carbon credit projects. The results of our analysis are positioned to inform companies’ carbon credit purchasing decisions by revealing projects’ biodiversity co-benefits.

A buyer decision-support tool prototype, available online, walks carbon credit purchasers through project characteristics that determine the potential for a carbon credit project to include biodiversity co-benefits. This project provides guidance for companies wishing to jointly achieve their carbon and biodiversity goals through purchasing carbon credits that hold biodiversity co-benefits. As the carbon market continues to expand, the results of this study and the accompanying buyer decision-support tool can aid companies in supporting biodiversity as they work towards climate change mitigation.

Acknowledgements

UC Santa Barbara Bren School: Dr. Andrew MacDonald, Assistant Professor; Dr. Robert Heilmayr, Associate Professor

Carbon Direct: Dr. Sarah Federman, Vice President, Landscape Decarbonization; Dr. Van Butsic, Principal Scientist; Jared Stapp, Science Analyst/Data Engineer

Patrick Roehrdanz, Director of Climate Change and Biodiversity, Conservation International

Carolyn Ching, Director of Food and Forests, Ceres

The Professional Environmental Management Association (PEMA)