Financial Innovation (Biodiv. Credits) - ES Impacts, Corporate Preferences and SFT Compliance
NbS Action
Development of ecosystem services for climate action and biodiversity
Description of the Learning Site
With the support of CREA (the network of research institutes depending from the Italian Ministry of Agriculture, Food Sovereignty and Forests) and University of Milan, a standard for the sustainable management of forests with the provision of carbon sequestration and biodiversity protection services has been developed by the National Park Appennino Tosco Emiliano’s authorities. After being certified under FSC and PEFC, some forests of the NP have been additionally certificated for the additional improvement of biodiversity through changes in the regeneration system. A Registry has been created by the National Park technical services.
Sales of the credits to industrial companies in 2022 demonstrates the need to improve metrics and the mechanism of payment, checking the consistency of the system of payment with the new standards that will be defined through the CRC Regulation implementation.
Quantitative and qualitative data from 2022 auction of biodiversity credits and well as Historical pricing of biodiversity credits and NP registry data. LS7 will provide data for the application of Voluntary Biodiversity Credits (VBCs) integration with FSC ES Pro to allow potential investments in the conservation and/or enhancement of biodiversity of these areas.
LS7 will be used to understand risk valuation considerations and the design of financial instruments with co-benefits (e.g. carbon sequestration, habitat creation, ES for recreation) as well as opportunities to aggregate and centralise the delivery channel for private finance. BIOFIN will contribute to a proof-of-concept sustainability credits system that includes quantified benefits on biodiversity.