The Role of Biodiversity Offsets in Conservation

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The Role of Biodiversity Offsets in Conservation
An open roundtable discussion

• CBD COP8
• Curitiba, Brazil
• 21 March 2006

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Biodiversity Offsets Introduction and
ContextJoshua Bishop, IUCN-The World
Conservation Union

• What are biodiversity offsets?
• Where do biodiversity offsets fit within the
  environmental mitigation hierarchy?
• What are the potential benefits of biodiversity
  offsets?
• What are the potential risks of biodiversity
  offsets?
• How to establish best practice for biodiversity
  offsets?

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Global policy context
To achieve, by 2010, a significant reduction of
the current rate of biodiversity loss at the
global, regional and national level - CBD
Conference of Parties, 2002
Halve, between 1990 and 2015, the proportion of
people whose income is less than 1 a day (Goal
1, Target 1) - UN Millennium Development Goals
We resolve to protect our natural resource
base in support of development - 2005 World
Summit Outcome
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What are biodiversity offsets?

• Conservation actions intended to compensate for
  the residual, unavoidable harm to biodiversity
  caused by development projects, so as to ensure
  no net loss of biodiversity.
• Before developers contemplate offsets, they
  should have first sought to avoid and minimise
  harm to biodiversity.
• ten Kate, K.., Bishop, J., and Bayon, R. (2004).
  Biodiversity offsets Views, experience, and the
  business case. IUCN and Insight Investment.

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Biodiversity offsets and impact mitigation
The mitigation hierarchy Avoid Reduce, moderate,
minimize Rescue (relocation, translocation) Repair
, reinstate, restore Compensate/offset
Reduce impacts towards zero residual
Positive contributions (Net biodiversity benefit)
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A brief history of biodiversity offsets

• Formalised in the USA systems of wetland
  mitigation and conservation banking.
• Enabling legislation in place in Australia,
  Brazil, Canada, the European Union and
  Switzerland.
• Offsets policy under discussion in Mexico, New
  Zealand and Uganda.
• Corporate commitments to offsets by BC Hydro, Rio
  Tinto, Newmont and Walmart.
• Growing interest from mainstream investors, e.g.
  ABN-Amro, IFC, Insight Investment and others.
• Multi-stakeholder initiatives, e.g. Business and
  Biodiversity Offset Program, Biodiversity Neutral
  Initiative, ICMM, IPIECA.

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The conservation case for biodiversity offsets

• More and better conservation
• Focus efforts on priorities, in context of
  landscape/regional planning
• Trade small compromised sites for larger areas
  with better prospects
• Greater connectivity of protected areas
• Integrate biodiversity into regional planning as
  well as the investment proposals of private
  developers
• Raise new funds for conservation and ecosystem
  restoration and stimulate private conservation
  efforts
• Lower the cost of conservation, by focusing
  effort where land is cheap and concentrating
  regulatory attention on fewer, larger sites
• Mainstream conservation into business practices

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The business case for biodiversity offsets

• License to operate
• Access to resources (formal/informal)
• Access to capital
• Preferred partner status
• Relations with employees, communities and
  regulators
• Flexibility
• location /or scale of rehabilitation
• third party implementation/liability
• Efficiency often more cost-effective than
  on-site rehabilitation
• Influence potential to inform emerging
  environmental policy

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Uncertainties and questions about biodiversity
offsets

• Slippery slope will biodiversity offsets lead
  to the approval of development projects that
  should not take place (e.g. destruction of unique
  habitats, or irreversible loss)?
• Social equity how to ensure equitable
  distribution of costs and benefits of offsets,
  while respecting the rights and concerns of local
  and indigenous communities?
• Currency can offsets provide comparable
  biodiversity and livelihood benefits as the
  original ecosystem? How to measure impact and
  determine a suitable offset?
• Responsibility how far does responsibility for
  environmental impact extend? Should developers
  offset the indirect impacts of their projects
  (e.g. labour migration)?

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Uncertainties and questions about biodiversity
offsets

• Additionality how to ensure that offsets
  deliver new and additional biodiversity benefits,
  and that biodiversity loss is not simply
  displaced (leakage)?
• Sustainability how to ensure that biodiversity
  offsets are secured in perpetuity or at least for
  the duration of the impact?
• Timing should offsets be in place prior to any
  environmental impact? How can this be achieved?
• Peformance standards need credible metrics and
  governance for biodiversity offsets, including
  effective mechanisms for stakeholder
  participation and oversight