The Nature and People Foundation has developed an Urban Biodiversity Standard (UBS) that includes the rules for the development of Urban Biodiversity Credits (UBC), a financial mechanism that helps businesses and investors dedicate resources to nature.
The UBS defines a UBC as a digital or non-digital asset that represents an increase in vegetation coverage.
The standard includes two types of credits:
Biodiversity Credits
Digital or non-digital assets that represent an increase in vegetation coverage. One credit is generated per 100 m² of new vegetation cover for each year that the increase is maintained, up to a maximum of 20 years. Credits are issued annually over this 20-year period, reflecting the sustained contribution to biodiversity enhancement.
Ecosystem Services Credits
Digital or non-digital assets that represent an increase of 100 m² in vegetative cover that delivers ecosystem services to people. Similar to Biodiversity Credits, one credit is generated per 100 m² of new green coverage for each year that the increase is maintained, with a maximum duration of 20 years.
These credits provide a quantifiable and tradable unit of biodiversity enhancement, facilitating investment and participation in biodiversity projects. By standardizing the measurement and valuation of biodiversity gains, the Urban Biodiversity Standard enables a transparent and efficient market for biodiversity credits.
PROCESS OF ISSUING A UBC
Applying the Urban Biodiversity Standard (UBS) to issue Urban Biodiversity Credits (UBCs) involves a structured process designed to ensure transparency and effectiveness. The steps are as follows:
Project Listing in the UBS Registry
The project is officially listed under the UBS registry, establishing its credibility and enabling stakeholders to track its progress.
Issuance of a Validation Report
A comprehensive Validation Report is prepared, detailing the expected outcomes in terms of biodiversity creation and enhancement of ecosystem services. This report assesses the project’s design, feasibility, and projected impact.
Project Registration
Once validated, the project is formally registered, allowing the implementation phase to commence. Registry confirms that the project meets the standards and criteria set by the UBS.
Project Verification
Periodic evaluations are conducted to assess and verify the project’s performance against its stated objectives.
- Credit Issuance
Based on the verified achievements in biodiversity enhancement and ecosystem service provision, UBCs are issued as acknowledged in the Verification Report. The number of credits corresponds to the volume of positive environmental impact generated by the project.