Exploring the future of conservation funding and biodiversity credits with Finn Ross, Founder of CarbonZ.
Finn Ross joined our recent CarbonCurious session to discuss the new CarbonZ Biodiversity Action Credit. In this webinar we explored how biodiversity action credits could support conservation efforts in New Zealand, making moves in the right direction for biodiversity.
What are Biodiversity Action Credits?
Biodiversity action credits are not like your typical carbon credit. While both aim to mitigate environmental impact, biodiversity credits are unique in their philanthropic nature. Unlike carbon credits, which are focused on trees and often traded, biodiversity action credits are closer to donations towards specific conservation projects. In this case the term 'credit' might be subjective, but in the context of CarbonZ, it represents a philanthropic action rather than a tradable commodity.
The demand for improving biodiversity is on the rise, but there's a catch. The scale of funding required to make a significant impact on conservation in New Zealand can be prohibitive. Philanthropy and businesses alone cannot meet this financial need, this is where the biodiversity action credits come into play. By purchasing biodiversity credits you can put the money where it needs to be, so it is effective.
Current Projects
A glimpse into CarbonZ's current projects, particularly the Trap Network, showed the effectiveness of the credits thus far. While immediate funding was directed towards human needs, the biodiversity in these areas now requires urgent financial support. The Trap Network aims to address this gap, making it a crucial project for CarbonZ.
To learn more about CarbonZ's current projects, check out their info pages below:
How are the financial values for biodiversity credits calculated?
The pricing is determined by factoring in all the costs associated with the conservation action. This includes the cost of traps, maintenance, and even volunteer labour. CarbonZ sets the price at around 20 to 30% above these costs to ensure that each credit purchased will fund at least the specified amount of habitat protection. The methodology behind this pricing is open-source, adding a layer of transparency to the process - you can check it out on their website here.
One of the most pressing questions in conservation is how to ensure that actions taken today have a lasting impact. CarbonZ only allows 50% of the funds for each project to come from their credits. This strategy ensures that there is another source of funding, increasing the likelihood of the project's continuity.
Is there a compliance market for Biodiversity in NZ?
While the government's role is key in making these efforts more impactful, and scaling up biodiversity across New Zealand, it's not just up to them. They're currently looking into how to better support biodiversity through a consultation process, similar to what's been done with the Emissions Trading Scheme (ETS) in the past. This is something to keep an eye on, as it could shape how biodiversity credits work in the future. To share your thoughts on the consultation visit the Ministry for the Environment website.
These CarbonZ Biodiversity Action Credits offer a new avenue for conservation funding, one that fills the gap that currently exists in the market. While the scale of funding required is immense, the first steps have been taken by CarbonZ. Biodiversity Action Credits represent more than just a financial transaction; they symbolise a commitment to protect and preserve our country’s biodiversity. Check out the full webinar at the top of this page to learn more.