Background and Rationale

Mobilizing adequate financial resources remains one of the most significant challenges to the implementation of the Kunming-Montreal Global Biodiversity Framework (KMGBF). Despite commitments made under the Convention on Biological Diversity (CBD), the global biodiversity financing gap remains substantial, reflecting a persistent mismatch between the resources required to achieve the Framework’s goals and targets and those currently available.

In this context, Parties and stakeholders have increasingly emphasized the need to diversify and scale up biodiversity finance through innovative mechanisms, including those capable of mobilizing private-sector investment while ensuring environmental integrity and equitable outcomes. Among the emerging approaches under discussion, biodiversity credits have attracted growing interest as a potential instrument to support conservation and sustainable use objectives.

At the same time, important questions remain regarding their design, governance, measurement methodologies, social and environmental safeguards, relationship with existing mechanisms, and potential contribution to the implementation of the KMGBF. There is therefore a need for further dialogue and exchange of experiences among Parties, Indigenous Peoples and local communities (IPLCs), financial institutions, the private sector, academia, and civil society organizations.

A dedicated side event on biodiversity credits will be held during SBI 7 to explore these issues and identify opportunities and challenges associated with the development of biodiversity credit markets. Discussions will focus on lessons learned from related mechanisms, including carbon markets and REDD+ initiatives, approaches for measuring biodiversity outcomes, private-sector engagement, and the safeguards necessary to ensure respect for the rights, knowledge, and interests of Indigenous Peoples, Quilombola communities, and other traditional communities.

Building on the outcomes of SBI 7, the present side event seeks to broaden participation by engaging additional countries, international organizations, partner institutions, and other relevant stakeholders. The event will provide a platform for exchanging perspectives on the role of biodiversity credits within broader biodiversity finance strategies and their potential contribution to the implementation of the KMGBF.

Objectives

The side event aims to:

• Promote dialogue and knowledge exchange on the opportunities, challenges, and emerging practices related to biodiversity credits;
• Explore the potential role of biodiversity credits in closing the biodiversity financing gap and supporting KMGBF implementation;
• Discuss approaches for measuring biodiversity outcomes and ensuring transparency, credibility, and environmental integrity;
• Identify key social, environmental, and governance safeguards, particularly regarding the rights and interests of Indigenous Peoples and local communities;
• Examine complementarities and synergies between biodiversity credits and existing mechanisms, including payments for ecosystem services, biodiversity offsets, environmental funds, and carbon markets;
• Foster greater conceptual and technical convergence among Parties and stakeholders regarding the development of biodiversity credit frameworks; and
• Contribute to the development of recommendations and future guidance that may support ongoing discussions under the Convention on Biological Diversity.

Expected Outcomes

The event is expected to:

• Enhance understanding of biodiversity credits among Parties and stakeholders;
• Facilitate the exchange of experiences and lessons learned from existing initiatives and related financial mechanisms;
• Identify key opportunities, challenges, and knowledge gaps requiring further consideration;
• Strengthen dialogue among governments, financial institutions, the private sector, IPLCs, academia, and civil society; and
• Contribute to the advancement of international discussions on innovative biodiversity finance mechanisms in support of the goals and targets of the Kunming-Montreal Global Biodiversity Framework.