How biocredits can protect biodiversity and reduce poverty
This report from the International Institute for Environment and Development explores the potential to use “biocredits” to protect biodiversity. Biocredits are an economic instrument that allows the creation and trade of “biodiversity units”. Biocredits would be bought by people or institutions that want to invest in protecting biodiversity, and the money from their initial sale would fund conservation activities that increase biodiversity above a baseline level. The report distinguishes between biocredits and biodiversity offsets, which are used to compensate for habitats that have been destroyed, e.g. because of construction projects.
While some of the food system challenges facing humanity are local, in an interconnected world, adopting a global perspective is essential. Many environmental issues, such as climate change, need supranational commitments and action to be addressed effectively. Due to ever increasing global trade flows, prices of commodities are connected through space; a drought in Romania may thus increase the price of wheat in Zimbabwe.